Financial overview

Statement of financial performance

In 2015-16 the department administered approximately $172.1 billion in payments or around 41% of government outlays. The department reported a small operating deficit of $3.2 million after adjustment for unfunded depreciation and amortisation expenses and the revaluation of assets. This represents a 0.07% variance to the budgeted net cost of services of $4.5 billion.

Income

The department was primarily funded through direct appropriation in the annual budget cycle. The department received service-related revenue from other Australian Government agencies and non-government entities under service arrangements - see Table 71 below.

In 2015-16 the department received total income of $4,417.1 million, comprising $4,223.5 million in government appropriation and $193.6 million in own source revenue and gains - see Table 77.

Table 71: Own source revenue1
Government agencies and other entities $ million
Australian Electoral Commission 6.4
Australian Taxation Office 16.5
Department of Foreign Affairs and Trade 7.2
Department of Health 36.1
Department of Immigration and Border Protection 1.5
Department of the Prime Minister and Cabinet 3.2
Department of Social Services 5.5
Department of Veterans’ Affairs 26.0
National Disability Insurance Agency 18.8
Other agencies (amounts of less than $1.0 million from other government agencies) 5.2
Other entities 59.7
Total 186.1

1. Financial and other data in this annual report is rounded to the nearest decimal point. This may lead to minor differences between numbers.

Expenses

The department's expenses in 2015-16 totalled $4,669.8 million compared to $4,432.6 million in 2014-15.

Table 72: Income and expenses
  2013-14
$ million
2014-15
$ million
2015-16
$ million
% change since
2014-15
Income 4,231.4 4,270.7 4,417.1 +3.4
Expenses 4,341.3 4,432.6 4,669.8 +5.4

Figure 8: Income and expenses

Figure 8: Income and expenses

Reporting of significant non-compliance issues

No matters were reported under section 19(1)(e) of the Public Governance, Performance and Accountability Act 2013 in relation to non-compliance with the finance law during the reporting period.

Statement of financial position

Figure 9: Equity, assets and liabilities

Figure 9: Equity, assets and liabilities

Equity

The total equity of the department at 30 June 2016 was $698.0 million compared to $671.4 million the year before.

Assets were revalued upwards during the year resulting in a 34.9% increase to the asset revaluation reserve.

Contributed equity increased by 17.2% reflecting $47.6 million in equity injections for the purchase of plant and equipment and software development; and $196.4 million departmental capital budget funding for the purchase of plant and equipment, software development and property leasehold improvement. In addition $1.9 million of net liabilities were transferred to the Department of Health under a restructuring of administrative arrangements.

Assets

The department's total assets increased by 0.6% to $2,061.1 million at 30 June 2016.

Liabilities

The department's total liabilities decreased by 1.0% to $1,363.1 million at 30 June 2016.

Table 73: Equity, assets and liabilities
  2013-14
$ million
2014-15
$ million
2015-16
$ million
% change since
2014-15
Equity 630.5 671.4 698.0 +4.0
Assets 1,909.6 2,048.4 2,061.1 +0.6
Liabilities 1,279.1 1,377.0 1,363.1 -1.0

Administered items

In 2015-16 the department collected and transferred $1.5 billion child support payments between separated parents for the support of their children. The department also recognised $26.6 million dividends and competitive neutrality payments on behalf of the Australian Government from Australian Hearing.

Page last updated: 18 November 2016

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