Section 3: Budgeted financial statements

This section presents budgeted financial statements which provide a comprehensive snapshot of the department's finances for the 2016-17 budget year, including the impact of budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Explanatory notes and analysis of budgeted financial statements

Since the 42nd Parliament (2007-10), there has been a significant increase in workload, particularly of Senate committees, culminating in the present impact of the largest cross-bench in the Senate's history, which continues to drive the high rate of committee inquiries and the complexity of work by the department in supporting the legislative process. Some supplementation was received over past financial years for new joint committees and a small amount to provide additional drafting support. An additional $1.5m in 2015-16 represented one-off funding.

The department is seeking to realign resources to the level required to meet ongoing sustained levels of legislative and, particularly, committee activity. The department welcomes the budget relief provided by the supplementation of $3.0 million for 2016-17 as a prelude to renegotiation of the funding base for the department.

As shown in Table 3.1 the department is expecting a $1.3m operating loss for 2015-16, which is to be funded from prior year reserves. This follows an operating loss of $1.2m for the 2014-15 financial year.

The department has also received capital funding of $0.4m in both 2016-17 and 2017-18 to implement a system to receive and publish digital copies of tabled documents. Online tabled documents, to be hosted on the Parliament's website, will be integrated with other elements of the website. This project expands on the 2010 Joint Committee on Publications initiative to develop a digital repository for the Parliamentary Papers Series, the e-PPS, and reiterated recently in the Belcher Review.

3.2 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June
2015-16
Estimated actual
$'000
2016-17
Budget
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward estimate
$'000
2019-20
Forward
estimate
$'000
EXPENSES
Employee benefits 19,855 20,287 18,315 18,672 18,795
Suppliers 2,522 3,027 2,150 2,112 2,125
Depreciation and amortisation 587 538 404 412 415
Total expenses 22,964 23,852 20,869 21,196 21,335
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services 511 450 450 450 450
Total own-source income 511 450 450 450 450
Net (cost of)/contribution by services (22,453) (23,402) (20,419) (20,746) (20,885)
Revenue from Government 21,136 22,864 20,015 20,334 20,470
Surplus/(deficit) attributable to the Commonwealth (1,317) (538) (404) (412) (415)
OTHER COMPREHENSIVE INCOME
Total other comprehensive income - - - - -
Total comprehensive income/(loss) (1,317) (538) (404) (412) (415)
Total comprehensive income/(loss) attributable to the Commonwealth (1,317) (538) (404) (412) (415)
Note: Impact of net cash appropriation arrangements
2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
2019-20
$'000
Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations. (730) - - - -
less depreciation/amortisation expenses previously funded through revenue appropriations 587 538 404 412 415
Total comprehensive income/(loss) - as per the statement of comprehensive income (1,317) (538) (404) (412) (415)

Prepared on Australian Accounting Standards basis.

Table 3.2: Budgeted departmental balance sheet (as at 30 June)
2015-16
Estimated actual
$'000
2016-17
Budget
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
2019-20
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents 200 200 200 200 200
Trade and other receivables 10,471 9,471 8,471 7,471 7,471
Total financial assets 10,671 9,671 8,671 7,671 7,671
Non-financial assets
Property, plant and equipment 1,988 3,194 4,569 5,569 5,569
Intangibles 2,517 2,667 2,667 2,667 2,667
Inventories 48 48 48 48 48
Other non-financial assets 191 191 191 191 191
Total non-financial assets 4,744 6,100 7,475 8,475 8,475
Total assets 15,415 15,771 16,146 16,146 16,146
LIABILITIES
Payables
Suppliers 185 185 185 185 185
Total payables 185 185 185 185 185
Provisions
Employee provisions 5,724 5,724 5,724 5,724 5,724
Total provisions 5,724 5,724 5,724 5,724 5,724
Total liabilities 5,909 5,909 5,909 5,909 5,909
Net assets 9,506 9,862 10,237 10,237 10,237
EQUITY*
Parent entity interest
Contributed equity 2,185 3,079 3,858 4,270 4,685
Reserves 11,388 11,388 11,388 11,388 11,388
Retained surplus (accumulated deficit) (4,067) (4,605) (5,009) (5,421) (5,836)
Total parent entity interest 9,506 9,862 10,237 10,237 10,237
Total equity 9,506 9,862 10,237 10,237 10,237

Prepared on Australian Accounting Standards basis.

*'Equity' is the residual interest in assets after deduction of liabilities.

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2016-17)
Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2016
Balance carried forward from previous period (4,067) 11,388 - 2,185 9,506
Adjustment for changes in accounting policies - - - - -
Adjusted opening balance - - - - -
Comprehensive income
Other comprehensive income - - - - -
Surplus/(deficit) for the period (538) - - - (538)
Total comprehensive income (538) - - - (538)
of which:
Attributable to the Commonwealth (538) - - - (538)
Transactions with owners
Contributions by owners
Departmental capital budget (DCB) - - - 894 894
Sub-total transactions with owners - - - 894 894
Estimated closing balance as at
30 June 2017
(4,605) 11,388 - 3,079 9,862
Closing balance attributable to the Commonwealth (4,605) 11,388 - 3,079 9,862

Prepared on Australian Accounting Standards basis.

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
2015-16
Estimated actual
$'000
2016-17
Budget
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
2019-20
Forward estimate
$'000
OPERATING ACTIVITIES
Cash received
Appropriations 21,628 23,864 21,015 21,334 20,470
Sale of goods and rendering of services 511 450 450 450 450
Total cash received 22,139 24,314 21,465 21,784 20,920
Cash used
Employees 19,855 20,287 18,315 18,672 18,795
Suppliers 2,522 3,027 2,150 2,112 2,125
Total cash used 22,377 23,314 20,465 20,784 20,920
Net cash from/(used by) operating activities (238) 1,000 1,000 1,000 -
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment and intangibles 367 1,894 1,779 1,412 415
Total cash used 367 1,894 1,779 1,412 415
Net cash from/(used by) investing activities (367) (1,894) (1,779) (1,412) (415)
FINANCING ACTIVITIES
Cash received
Contributed equity 367 894 779 412 415
Total cash received 367 894 779 412 415
Net cash from/(used by) financing activities 367 894 779 412 415
Net increase/(decrease) in cash held (238) - - - -
Cash and cash equivalents at the beginning of the reporting period 438 200 200 200 200
Cash and cash equivalents at the end of the reporting period 200 200 200 200 200

Prepared on Australian Accounting Standards basis.

Table 3.5 Departmental capital budget statement (for the period ended 30 June)
2015-16
Estimated actual
$'000
2016-17
Budget
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
2019-20
Forward estimate
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget (DCB) 367 894 779 412 415
Total new capital appropriations 367 894 779 412 415
Provided for:
Purchase of non-financial assets 367 894 779 412 415
Total items 367 894 779 412 415
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriation - DCB (a) 367 894 779 412 415
Funded internally from departmental resources (b) - 1,000 1,000 1,000 -
TOTAL 367 1,894 1,779 1,412 415
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE
Total purchases 367 1,894 1,779 1,412 415
Total cash used to acquire assets 367 1,894 1,779 1,412 415

Prepared on Australian Accounting Standards basis.

  1. Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental capital budgets (DCBs).
  2. Includes the following sources of funding:
    • current and prior year appropriations,
    • s 74 Retained revenue receipts, and
    • proceeds from the sale of assets.
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