Annual Report 2005–06
The department: Financial overview
Page contents:
- Departmental financial performance
- Statement of financial performance
- Statement of financial position
This section provides a summary of the department’s financial performance for 2005–06 which covers the core department, CSA and CRS Australia. Results for the department and administered results are shown in the audited financial statements; this summary should be read in conjunction with those statements.
Financial overview
The departmental total resources are shown in some detail in Table 1(a). Details of the price of outputs and the administered and departmental expenses incurred in delivering the department’s outputs are also detailed in Table 1(a), as is the budget allocation for the 2006-07 financial year for these items.
Departmental financial performance
The department’s Statement of financial performance reports an operating surplus of $10.8 million which is 2.2% of the revenue available to the department. The result was more than the operating result of $6.6 million forecast in the latest Budget Statements for the 2005–06 year.
Statement of financial performance
Revenue
The department was appropriated $298.3 million in the 2005–06 Budget. In the Portfolio Additional Estimates Statements (PAES) 2005–06 in February 2006, the department was provided additional funding of $10.8 million. A further $9.4 million in the Supplementary Estimates process in May 2006 brings the total appropriation for 2005–06 to $318.5 million. Of this, $22.7 million was for the core department and $295.8 million for CSA.
In addition, the department recognised further revenue of $169.2 million primarily from the provision of rehabilitation services by CRS Australia (Figure 4). Total revenue received by the department in 2005–06 was, therefore, $487.7 million.
Figure 4 Departmental revenue by agency
Expenses
The department’s expenses totalled $476.9 million: $23.4 million in the core department, $289.0 million in CSA and $164.5 million in CRS Australia (Figure 5).
Figure 5 Departmental expense by agency
The department incurred employee expenses of $300.2 million, supplier expenses of $160.8 million, depreciation and other expenses of $14.7 million, and CRS Australia incurred income tax equivalent expenses of $1.2 million (Figure 6).
Figure 6 Departmental expense by type
Statement of financial position
Equity
The department’s total equity is $62.4 million, representing an increase of $13.5 million during the 2005–06 financial year. This reflects retention of the 2005–06 surplus of $10.8 million as well as the impact of the transition to the Australian Equivalents to International Financial Reporting Standards (AEIFRS).
Assets
The department’s assets total $169.4 million and can be categorised as:
- cash
- fixed assets (infrastructure, plant and equipment, land and buildings)
- intangibles (non-physical assets such as software)
- receivables
- other non-financial assets (prepayments).
The department has $79.2 million recorded as a receivable in the Official Public Account. Of this amount, $3.3 million is held on behalf of the core department, $36.6 million for CSA and $39.3 million for CRS Australia.
Liabilities
The department has total liabilities of $107.0 million. This consists of employee provisions of $68.3 million, building-related provisions of $15.1 million, trade creditor provisions of $22.2 million and other payables of $1.4 million.
Administered items
CSA’s administered activities include the provision of assessment, registration, collection and disbursement services that facilitate the transfer of child support payments between separated parents for the support of their children.
The core department receives dividend revenue from Australian Hearing and Health Services Australia, and competitive neutrality revenue from Australian Hearing. All administered receipts are transferred directly to the Official Public Account.