Financial performance

The department ended the 2017–18 financial year reporting a surplus of $2.491 million (before depreciation). This varied from the breakeven position forecast in the department’s Portfolio Budget Statements. A major contributing factor to the variance was lower than forecast expenditure on employee benefits. This underspend was a result of the following factors:

  • The budget forecast was based on the assumption that a new enterprise agreement and the resultant pay rise would come into effect prior to the commencement of the 2017–18 financial year; however, the agreement was not enacted until December 2017.
  • A number of positions remained vacant throughout the reporting period due to unexpected delays in recruitment processes. This resulted in a lower average staffing level (ASL) than was budgeted.

In July 2017, the department invested $2.546 million in a 12 month term deposit. The source of the deposit was the former Inter-parliamentary Relations Special Account which was subject to a sun-setting provision on 1 April 2017. Interest is earned on the deposit and retained by the department to spend on equipment and development and training for Pacific parliaments.

The department’s financial position has remained strong, with appropriation receivable totalling $15.903 million and cash and cash equivalents of $0.410 million. The department engaged a valuation specialist to conduct a desktop review of its carrying value of the property, plant and equipment asset class. The independent valuer’s report concluded that there was no material difference between the fair value and the carrying value of this asset class. Asset additions during the year related to the upgrade of the department’s in-house print room equipment and the continuation of the furniture replacement project. The furniture replacement project will conclude in July 2018. During the year the department transferred assets to the Department of Parliamentary Services (DPS) as part of the consolidation of information and communications technology services across the parliamentary departments. The assets were transferred to the DPS for no consideration, and were recognised as a distribution resulting in a reduction in equity of $1.165 million.

The estimates for 2018–19 indicate that the department has sufficient resources to continue to support members, the House and committees.

Figure 3: Financial performance, 2013–14 to 2017–18

Figure 3: Graph showing the income and expenses from 2013-14 to 2017-18, as discussed above.

Entity resource statement 2017–18

  Actual available appropriation for 2017–18
$’000
Payments made 2017–18
$’000
Balance remaining 2017–18
$’000

 

(a) (b) (a)–(b)
Departmental1      

Annual appropriation2

43,157

26,844

16,313

Total

43,157

26,844

16,313

Administered expenses3

     

Outcome 1

320

312

8

Total

320

312

8

Total available annual appropriations

43,777

27,156

16,321

Total resourcing and payments for the Department of the House of Representatives

43,777

27,156

 
  1. Appropriation (Parliamentary Departments) Act (No. 1) 2017–18, prior year departmental appropriation and section 74 retained revenue receipts.
  2. Includes an amount of $0.640 million in 2017–18 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners’. Excludes $0.080 million subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013.
  3. Appropriation (Parliamentary Departments) Act (No. 1) 2017–18.

Third-party drawdowns from and on behalf of other entities

  $’000
Payments made on behalf of the Department of Finance (disclosed in the respective entity’s resource statement) 27,948
Payments made on behalf of the Australian Public Service Commission (disclosed in the respective entity’s resource statement) 19,637

 

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