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PORTFOLIO BUDGET STATEMENTS 2012-13BUDGET RELATED PAPER NO. 1.15

PRIME MINISTER AND CABINET PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OFAPPROPRIATIONS SPECIFIED BY OUTCOMESAND PROGRAMS BY AGENCY

Printed Version: ISBN: 978-1-921739-81-1

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The document must be attributed as the Portfolio Budget Statements 2012-13 Budget Related Paper No. 1.15 Prime Minister and Cabinet Portfolio.

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Senator the Hon Jan McLucasParliamentary Secretary to the Prime Minister

Parliamentary Secretary for Disabilities and Carers

Parliament House Telephone: 02 6277 3680CANBERRA ACT 2600 Fax: 02 6277 5721

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2012-13 Budget for the Prime Minister and Cabinet Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

JAN MCLUCAS

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Abbreviations and conventionsThe following notation may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

EnquiriesShould you have any enquiries regarding this publication please contact the Chief Financial Officer, Department of the Prime Minister and Cabinet on (02) 6271 5652.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

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USER GUIDE

The purpose of the 2012-13 Portfolio Budget Statements is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the Portfolio Budget Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1) and (No. 2) for 2012-13. In this sense the Portfolio Budget Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The Portfolio Budget Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

For the purpose of this document:

Outcomes are referred to as the intended result, consequence or impact of government actions on the Australian Community.

Programs are referred to as an activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended results specified in an outcome statement.

Program components are items of activity that are reported below the program level where those areas of activity are significant and/or public interest considerations dictate a more detailed and transparent level of reporting.

For example:Program 1.1 refers to Outcome 1, program 1.Program 1.1.1 refers to Outcome 1, program 1, program component 1.

Agencies are not required to provide reporting below the level of program however agencies can do so if it provides greater transparency.

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and

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accordingly, these entities are not reported in the Portfolio Budget Statements.

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CONTENTS

Portfolio Overview.......................................................................................................1Prime Minister and Cabinet Portfolio Overview..............................................................3

Agency Resources and Planned Performance........................................................11Department of the Prime Minister and Cabinet............................................................13Australian National Audit Office....................................................................................59Australian Public Service Commission.........................................................................89National Mental Health Commission..........................................................................127Office of National Assessments.................................................................................151Office of the Commonwealth Ombudsman.................................................................173Office of the Inspector-General of Intelligence and Security......................................193Office of the Official Secretary to the Governor-General............................................213

Glossary.................................................................................................................... 241

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PORTFOLIO OVERVIEW

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Portfolio Overview

PRIME MINISTER AND CABINETPORTFOLIO OVERVIEW

The Prime Minister and Cabinet Portfolio has a unique and privileged role at the forefront of public and government administration. The principal responsibilities of the Prime Minister and Cabinet Portfolio are best described in the Administrative Arrangements Order (AAO) of 9 February 2012 and comprise: advice to the Prime Minister across government on policy and

implementation

assistance to the Prime Minister in managing the Cabinet program

work and family policy co-ordination

national security policy co-ordination

counter terrorism policy co-ordination

cyber policy co-ordination

intergovernmental relations and communications with state and territory governments

social inclusion, non-profit sector and volunteering

co-ordination of government administration

Australian Government employment workplace relations policy, including equal employment opportunity and administration of the framework for agreement making and remuneration and conditions

Australian honours and symbols policy

government ceremonial and hospitality.

The legislation now administered by the portfolio includes:

Administrative Arrangements Act 1987

Auditor-General Act 1997

Australian Capital Territory Government Service (Consequential Provisions) Act 1994

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Portfolio Overview

Defence Act 1903, Part IIIAAA insofar as it relates to the powers or functions of the Prime Minister as an authorising minister and sections 58F to 58Q, 61, 61A, 61B, 61C, 118A and 118B

Equal Employment Opportunity (Commonwealth Authorities) Act 1987

Flags Act 1953

Governor-General Act 1974, except to the extent administered by the Minister for Finance and Deregulation

House of Representatives (Quorum) Act 1989

Independent National Security Legislation Monitor Act 2010

Inspector-General of Intelligence and Security Act 1986

Judicial and Statutory Officers (Remuneration and Allowances) Act 1984

Long Service Leave (Commonwealth Employees) Act 1976

Maternity Leave (Commonwealth Employees) Act 1973

Office of National Assessments Act 1977

Ombudsman Act 1976

Parliamentary Commission of Inquiry (Repeal) Act 1986

Parliamentary Presiding Officers Act 1965

Public Service Act 1999

Remuneration and Allowances Act 1990

Remuneration and Allowances Alteration Act 1986

Remuneration Tribunal Act 1973

Royal Commissions Act 1902

Royal Powers Act 1953

Royal Style and Titles Act 1973

Senate (Quorum) Act 1991.

The structure and outcomes of the portfolio are depicted in diagrammatic form on pages 7-8.

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Portfolio Overview

The portfolio comprises one Department of State, one Commonwealth Company and seven Prescribed Agencies.

Department of State:

Department of the Prime Minister and Cabinet.

Commonwealth Company:

National Australia Day Council Limited.

Prescribed Agencies:

Australian National Audit Office

Australian Public Service Commission

National Mental Health Commission

Office of National Assessments

Office of the Commonwealth Ombudsman

Office of the Inspector-General of Intelligence and Security

Office of the Official Secretary to the Governor-General.

The Department of the Prime Minister and Cabinet (PM&C) is a Department of State. The principal function of PM&C is to provide support to the Prime Minister, the Cabinet, portfolio ministers, and parliamentary secretaries to achieve a coordinated and innovative approach to the development and implementation of government policies.The National Australia Day Council Limited (NADC) is a Commonwealth Company responsible for the coordination of Australia Day celebrations across the nation and for the Australian of the Year Awards.The Australian National Audit Office (ANAO) is a statutory body established under the Auditor-General Act 1997 that assists the Auditor-General in undertaking the performance of their functions under the Act.The Australian Public Service Commission (APSC) is a statutory agency with a number of defined functions under the Public Service Act 1999 and has a central role in leading a range of broad public service reforms as articulated in the government’s “Ahead of the Game: Blueprint for the Reform of Australian Government Administration”. The APSC has a key role in developing a human capital strategy to support a united, citizen-centric

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Portfolio Overview

APS, fostering talent and leadership, assuring agencies’ organisational capability, revising and embedding APS Values, supporting high ethical standards and co-ordinating workplace relations for Australian Government employment.The National Mental Health Commission (NMHC) is an executive agency under the Public Service Act 1999 established on 1 January 2012. It is Australia’s first National Mental Health Commission, and reports to the Prime Minister. The NMHC will contribute to the government’s agenda for mental health reform through an independent accountability, reporting and advisory role and through high profile, cross sectoral leadership and collaboration.The Office of National Assessments (ONA) is a statutory agency operating under the Office of National Assessments Act 1977. The ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. The ONA is also responsible for coordinating and evaluating Australia’s foreign intelligence activities.The Office of the Commonwealth Ombudsman (OCO) is an independent statutory agency under the Ombudsman Act 1976 that works to ensure that administrative action by Australian Government agencies is fair and accountable.The Office of the Inspector-General of Intelligence and Security (OIGIS) is an independent statutory agency under the Inspector-General of Intelligence and Security Act 1986 that works to provide assurance that Australia’s intelligence agencies act legally and with propriety.The Office of the Official Secretary to the Governor-General (OOSGG) is a statutory office that supports the Governor-General to enable them to perform their official duties. The position of the Official Secretary to the Governor-General (the Official Secretary) has existed since 1901. The OOSGG was established in December 1984 by amendment to the Governor-General Act 1974.More details about each agency’s responsibilities appear in individual agency statements contained in these Portfolio Budget Statements. Portfolio Budget Statements are not required for the National Australia Day Council Limited as it is not funded by a direct appropriation.

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Portfolio Overview

Figure 1: Prime Minister and Cabinet Portfolio structure and outcomes

Prime Minister — The Hon Julia Gillard MPMinister Assisting the Prime Minister on Digital Productivity — Senator the Hon Stephen Conroy

Minister for Social Inclusion — The Hon Mark Butler MPMinister Assisting the Prime Minister on Mental Health Reform — The Hon Mark Butler MP

Minister for the Public Service and Integrity — The Hon Gary Gray AO MPMinister Assisting the Prime Minister on the Centenary of ANZAC — The Hon Warren Snowdon MP

Cabinet Secretary — The Hon Mark Dreyfus QC MPParliamentary Secretary to the Prime Minister — Senator the Hon Jan McLucas

Department of the Prime Minister and Cabinet Secretary: Dr Ian J Watt AO

Outcome: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, Cabinet and the Cabinet Secretary.

National Australia Day Council Limited Acting Chief Executive Officer: Ms Tamara Johnston

Outcome: A shared celebration of Australia and Australians through promoting the meaning of and participation in Australia Day and the Australian of the Year Awards.

Australian National Audit Office Auditor-General: Mr Ian McPhee PSM

Outcome 1: To provide assurance on the fair presentation of financial statements of Australian Government entities by providing independent audit opinions and related reports for the information of Parliament and the Executive.

Outcome 2: To improve the efficiency and effectiveness of the administration of Australian Government programs and entities by undertaking a program of independent performance audits and assurance reviews for the information of Parliament and the Executive.

Australian Public Service Commission Commissioner: Mr Stephen Sedgwick

Outcome: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

National Mental Health Commission Chief Executive Officer: Ms Robyn Kruk AM

Outcome: Provide expert advice to the Australian Government and cross-sectoral leadership on the policy, programs, services and systems that support mental health in Australia, including through administering the Annual National Report Card on Mental Health and Suicide Prevention, undertaking performance monitoring and reporting, and engaging consumers and carers.

Office of National Assessments Director-General: Mr Allan Gyngell AO

Outcome: Advancement of Australia’s national interests through increased government awareness of international developments affecting Australia.

continued on next page

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Portfolio Overview

Office of the Commonwealth Ombudsman Acting Ombudsman: Ms Alison Larkins

Outcome: Fair and accountable administrative action by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

Office of the Inspector-General of Intelligence and Security Inspector-General: Dr Vivienne Thom

Outcome: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

Office of the Official Secretary to the Governor-General Official Secretary: Mr Stephen Brady

Outcome: The performance of the Governor-General’s role is facilitated through organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.

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Portfolio Overview

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2012-13 Budget year, by agency.

Table 1: Portfolio Resources 2012-13Receipts Total

Bill No. 1 Bill No. 2 Special$'000 $'000 $'000 $'000 $'000

Department of the PrimeMinister & CabinetAdministered appropriations 16,502 - - - 16,502 Departmental appropriations 126,230 9,600 - 13,980 149,810 Total: 142,732 9,600 - 13,980 166,312

National Australia Day Council LimitedAdministered appropriations - - - - - Departmental appropriations - - - 6,450 6,450 Total: - - - 6,450 6,450

Australian National Audit OfficeAdministered appropriations - - - - - Departmental appropriations 74,722 - 482 3,324 78,528 Total: 74,722 - 482 3,324 78,528 Australian Public Service CommissionAdministered appropriations - - 59,851 - 59,851 Departmental appropriations 23,686 - - 27,243 50,929 Total: 23,686 - 59,851 27,243 110,780

National Mental Health CommissionAdministered appropriations 4,158 - - - 4,158 Departmental appropriations 2,347 - - - 2,347 Total: 6,505 - - - 6,505

Appropriation

Continued on next page

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Portfolio Overview

Table 1: Portfolio Resources 2012-13 (continued) Receipts Total

Bill No. 1 Bill No. 2 Special$'000 $'000 $'000 $'000 $'000

Office of National AssessmentsAdministered appropriations - - - - - Departmental appropriations 31,148 - - - 31,148 Total: 31,148 - - - 31,148

Office of the Commonwealth OmbudsmanAdministered appropriations - - - - - Departmental appropriations 18,914 - - 1,886 20,800 Total: 18,914 - - 1,886 20,800

Office of the Inspector-General of Intelligence and SecurityAdministered appropriations - - - - - Departmental appropriations 2,190 - - - 2,190 Total: 2,190 - - - 2,190

Office of the Official Secretary to the Governor-GeneralAdministered appropriations 1,976 - 394 - 2,370 Departmental appropriations 11,600 - - 14 11,614 Total: 13,576 - 394 14 13,984

Portfolio total 436,697 Less amounts transferred

w ithin portfolio 1 3,394 - - - 3,394

Resources available w ithin portfolio: 433,303

Appropriation

1 Amounts transferred within the portfolio include grant payments made to the National Australia Day Council Limited ($3.4m) by the Department of the Prime Minister and Cabinet.

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AGENCY RESOURCES ANDPLANNED PERFORMANCE

Department of the Prime Minister and Cabinet.......................................................13

Australian National Audit Office...............................................................................59

Australian Public Service Commission....................................................................89

National Mental Health Commission......................................................................127

Office of National Assessments.............................................................................151

Office of the Commonwealth Ombudsman............................................................173

Office of the Inspector-General of Intelligence and Security...............................193

Office of the Official Secretary to the Governor-General......................................213

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Portfolio Overview

Department of the Prime Minister and Cabinet

Agency resources and planned performance

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DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Agency overview and resources............................................................171.1 Strategic Direction Statement.................................................................................17

1.2 Agency Resource Statement..................................................................................18

1.3 Budget Measures...................................................................................................21

1.4 Transition Table – Program Components...............................................................22

Section 2: Outcomes and planned performance.....................................................232.1 Outcomes and performance information................................................................23

Section 3: Explanatory tables and budgeted financial statements........................423.1 Explanatory tables..................................................................................................42

3.2 Budgeted Financial Statements.............................................................................45

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PM&C Budget Statements

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The role of the Department of the Prime Minister and Cabinet (PM&C) is to provide policy advice and support to the Prime Minister, the Cabinet, portfolio ministers, and parliamentary secretaries.

Strategically, the department continues to strive to achieve a coordinated and innovative approach to the development and implementation of government policies. This requires well considered advice on a range of issues, drawing together input from across portfolios, to address the long term challenges and opportunities facing Australia. Priority areas for PM&C are to:

support the government’s program of reform through strategic policy advice and coordination of government policy on many complex issues such as national security; international relations; and economic, social and environmental issues

provide leadership and policy advice for the Group of 20 (G20) agenda as well as deliver all administrative and logistical arrangements for the G20 leaders meetings scheduled to be held in Australia during 2014

continue to foster improved Commonwealth-state relations with the states and territories by coordinating the Council of Australian Governments (COAG) arrangements.

A more detailed strategy for each program and program component is outlined within Section 2 of this document.

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1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

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Table 1.1: PM&C Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriation available in

2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000

Ordinary annual services1

Departmental appropriationPrior year departmental appropriation2 18,379 - 18,379 42,170

Departmental appropriation3 - 126,230 126,230 180,832 s31 relevant agency receipts4 - 13,980 13,980 22,219 Total 18,379 140,210 158,589 245,221

Administered expenses5

Outcome 1: Policy & Support - 16,502 16,502 19,427 Outcome 2: Arts & Cultural Development - - - 131,384 Outcome 3: Sport & Recreation - - - 23,722 Payments to CAC Act bodies - - - 423,037 Total - 16,502 16,502 597,570

Total ordinary annual services A 18,379 156,712 175,091 842,791 Other servicesAdministered expensesDepartmental non-operating

Equity injections6 - 9,600 9,600 3,988 Total - 9,600 9,600 3,988

Administered non-operatingAdministered assets and liabilities - - - 175 Total - - - 175

Total other services B - 9,600 9,600 4,163 Total available annual

appropriations 18,379 166,312 184,691 846,954 Special appropriationsTotal special appropriations C - - - - Total appropriations excluding

Special Accounts 18,379 166,312 184,691 846,954 Special Accounts

Opening balance - - - - Total Special Account D - - - - Total resourcingA+B+C+D 18,379 166,312 184,691 846,954 Total net resourcing for agency 18,379 166,312 184,691 846,954

1 Appropriation Bill (No.1) 2012-13.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $2.9m in 2012-13 for the Departmental Capital Budget (refer to table 3.2.5 for

further details). For accounting purposes, this amount has been designated as 'contributions by owners'.4 s31 relevant agency receipts — estimate.5 Includes an amount of $0.2m in 2012-13 for the Administered Capital Budget (refer to table 3.2.10 for

further details). For accounting purposes this amount has been designated as 'contributions by owners'.6 Appropriation Bill (No.2) 2012-13.Note: All figures are GST exclusive.

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Table 1.1: (continued) Third party payments from and on behalf of other agencies

2012-13 2011-12$'000 $'000

Receipts received from other agencies for the provision of services(disclosed above w ithin Departmental section 31) 13,084 16,116

Payments made to CAC Act bodies w ithin the Portfolio Administered Bill 1

Australia Council - 135,229 Australian Film Television & Radio School - 14,082 Australian National Maritime Museum - 16,090 Australian Sports Commission - 152,000 National Film & Sound Archive - 14,572 National Gallery of Australia - 17,422 National Library - 28,574 National Museum of Australia - 29,091 Screen Australia - 15,978 Total Administered Bill 1 - 423,037

Administered Bill 2Australian National Maritime Museum - 973 National Film & Sound Archive - 766 National Gallery of Australia - 16,219 National Library - 5,705 National Museum of Australia - 1,924 Total Administered Bill 2 - 25,587

Total CAC Act body payments1 - 448,624 1 The 2011-12 estimate reflects the period PM&C was responsible for administering CAC Act body

payments prior to the transfer of the arts and sport function to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) as a result of the AAO of 14 December 2011.

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1.3 BUDGET MEASURES

Budget measures relating to PM&C are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: PM&C 2012-13 Budget measuresProgram 2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000Expense measures Australia to host the Group of 20 in 2014

Departmental expenses 1.1 - 24,106 78,081 212,749 1,400 Total - 24,106 78,081 212,749 1,400

Total expense measuresDepartmental - 24,106 78,081 212,749 1,400

Total - 24,106 78,081 212,749 1,400

Capital measures Australia to host the Group of 20 in 2014

Departmental capital 1.1 - 9,600 1,000 - - Total - 9,600 1,000 - -

Total capital measuresDepartmental - 9,600 1,000 - -

Total - 9,600 1,000 - - Prepared on a Government Finance Statistics (fiscal) basis.

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1.4 TRANSITION TABLES – PROGRAM COMPONENTS

Since the 2011-12 Portfolio Budget Statements, PM&C has changed the structure of the program components comprising ‘Program 1: Prime Minister and Cabinet’.

A transition table from the structure published in the 2011-12 Portfolio Budget Statements to the 2012-13 Portfolio Budget Statements is shown below in Figure 1.

Figure 1: Transition Table

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2011-12 Budget Year 2012-13 Budget YearOutcome 1: Prime Minister and Cabinet Outcome 1: Prime Minister and Cabinet

Program Components: Program Components:

1.1.1: Domestic Policy 1.1.1: Domestic Policy

1.1.2: National Security and International Policy 1.1.2: National Security and International Policy

1.1.3: Strategic Policy & Implementation

1.1.4: Support Services for Government Operations 1.1.3: Support Services for Government Operations

1.1.5: Commonw ealth Heads of Government Meeting 2011

1.1.4: Group of 20 Meeting 2014

1.2: Off icial and Ceremonial Support 1.2: Official and Ceremonial Support


Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

The PM&C outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of PM&C in achieving government outcomes.

Outcome 1: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, Cabinet and the Cabinet Secretary.

Outcome 1 StrategyPM&C’s primary role is to provide advice for, and support to, the Prime Minister, the Cabinet, portfolio ministers and parliamentary secretaries to achieve a coordinated and innovative approach to the development and implementation of government policies.

The department provides advice to the Prime Minister on major domestic, international and national security policy, including all matters considered by Cabinet. The Prime Minister and the Cabinet are given accurate, clear and timely advice that takes into account the views of all portfolios. Secretariat support is provided for meetings of Cabinet, its committees and the Federal Executive Council and the processes to facilitate the decision-making role of Cabinet. The department provides support for the government’s Community Cabinet meetings across Australia.

Forward-looking research and analysis projects will continue to provide Ministers with advice on emerging issues and strategic policy challenges, with a focus on the government’s major domestic and international priorities. The department also monitors the implementation of key government initiatives, policies, programs and reform agendas.

The department is the primary source of advice on the management of government business and on machinery of government matters and

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interaction between the parliament and the public service, including coordination of the government’s legislation program.

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The department actively advances cooperation between the Australian Government and other governments in Australia by carrying forward an extensive range of work through the Council of Australian Governments (COAG), including a revitalised and broadened national reform agenda. PM&C coordinates arrangements and provides secretariat support for meetings of COAG and advises the Prime Minister on the implications of proposals for Commonwealth–state relations.

The department provides high-level support for major events, such as visits by heads of state, ceremonies and state occasions, and coordinates the logistical arrangements for the Prime Minister’s overseas visits.

From 2011-12 the department has commenced preparing to deliver on the government’s successful bid to host the G20 in Australia during 2014. This will involve the G20 2014 Taskforce providing leadership on policy advice for the G20 agenda as well as delivering all administrative and logistical arrangements for the G20 leaders meetings.

A range of support services are provided to the Prime Minister, the Cabinet Secretary, portfolio ministers, and the government. These services include assisting the Leader of the House and the Manager of Government Business in the Senate to schedule government business in parliament. The department supports the operations of the Prime Minister’s official residences and provides staffing and administrative services to former Governors-General and the Governor-General designate.

Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program and program component.

The focus of the 2012-13 Portfolio Budget Statements is on resourcing for 2012-13 and across the forward estimates. As such information on estimated expenses for previous PM&C Outcomes 2 and 3 relating to the arts and sport functions have not been included in the program tables within Section 2 as the functions transferred to DRALGAS during 2011-12.

Similarly, CHOGM has not been reported as a separate program component providing a contribution to Outcome 1 in the 2012-13 Portfolio Budget Statements as the program terminated in 2011-12. Estimated expenses for 2011-12 have been included in Table 2.1, however final expenses relating to CHOGM will be reported in the 2011-12 Annual Report.

The program components reported within Section 2 of this document have had the 2011-12 estimated actuals adjusted to reflect the revised program structure as per the program transition table on page 22 for comparative purposes.

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Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Coordination of government activities; policy 2011-12 2012-13development; advice and program delivery to support Estimated estimatedand inform the Prime Minister, Cabinet and the actual expensesCabinet Secretary. expenses

$'000 $'000Program 1.1: Prime Minister & Cabinet1.1.1 Domestic PolicyAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 6,001 5,513 Departmental expenses

Departmental appropriation1 60,808 55,384 Expenses not requiring appropriation in the Budget year2 4,124 3,405 Total for Program 1.1.1 70,933 64,302

Program 1.1.2: National Security and International PolicyAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 111 111 Departmental expenses


Program 1.1.3: Support Services for Government OperationsAdministered expenses



Program 1.1.4: Group of 20 Meeting 2014Departmental expenses

Departmental appropriation1 - 24,106 Expenses not requiring appropriation in the Budget year2 - - Total for Program 1.1.4 - 24,106

Program 1.1.5: Commonwealth Heads of Government MeetingDepartmental expenses

Departmental appropriation1 42,069 - Expenses not requiring appropriation in the Budget year2 - - Total for Program 1.1.5 42,069 -

Continued on next page

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Table 2.1: Budgeted Expenses for Outcome 1 (continued)2011-12 2012-13

Estimated estimatedactual expenses

expenses$'000 $'000

Program 1.2: Official and Ceremonial supportAdministered expenses


Departmental appropriation1 3,887 3,151 Expenses not requiring appropriation in the Budget year2 249 209 Total for Program 1.2 12,175 8,761

Outcome 1 Totals by appropriation typeAdministered Expenses


Departmental appropriation1 170,299 137,343 Expenses not requiring appropriation in the Budget year2 11,243 9,704

Total expenses for Outcome 1 199,611 162,000

2011-12 2012-13Average Staffing Level (number)3 712 700

1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and‘Revenue from independent sources (s31)’.

2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense and resources received free of charge such as audit fees and secondees.

3 The decrease in ASL largely reflects the conclusion of CHOGM 2011 and reduced staff numbers under the department’s revised organisational structure. These reductions are partially offset by an increase in ASL for the commencement of the G20 Taskforce. The ASL for 2011-12 of 712 shown above differs to the 896 published in Budget Paper 1 as the 184 staff relating to arts and sport were not attached to Outcome 1 prior to transferring to DRALGAS during 2011-12.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Contributions to Outcome 1

Program 1.1: Prime Minister and Cabinet

Program Component 1.1.1: Domestic Policy

Program Component 1.1.1 ObjectivesThis program is delivered through the Domestic Policy Group and the COAG Reform Council.

Domestic Policy Group Domestic Policy Group supports the development of economic, environmental, productivity and social policies, advising on: industry, infrastructure and environmental policies, including transport,

communications, digital economy, energy, resources, tourism, science, innovation, skills and higher education, sustainability, water, climate change, heritage, rural, regional Australia, local government and agriculture matters

domestic and international economic conditions, fiscal policy, taxation policy, superannuation, regulatory reform and competition policy, Commonwealth-state financial relations, monetary policy, financial markets, corporations law, wages policy and workplace relations matters, and international economic and financial policy

longer-term strategic policy development across the department’s responsibilities

health, aged care, sporting and arts/cultural policy, Indigenous affairs, employment, education, and youth affairs

a wide range of other issues, including early childhood development and child care, workforce participation, families, women’s issues, community services, social security, housing, employment, disability, carers, seniors, veterans, immigration, citizenship, disaster recovery and social inclusion, and managing the department’s relationship with the National Mental Health Commission

policy issues and coordinating arrangements and briefing for COAG and senior officials meetings

volunteering, philanthropy and the National Compact with not-for-profit organisations including the provision and administration of grant funding for volunteering activities

Australia in the Asian Century through the establishment of the ‘Australia in the Asian Century (White Paper) Taskforce’ who will

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develop a high quality White Paper for consideration by the Cabinet

whole-of-government strategic communications

long-term strategic issues and complex, cross-cutting public policy challenges.

COAG Reform CouncilThe COAG Reform Council’s main objective is to strengthen public accountability and encourage the progress of reform through objective, credible assessment and reporting of the performance of governments in national reform areas referred by COAG.

Program Component 1.1.1 ExpensesNo new funding has been provided to the Domestic Policy program in the 2012-13 Budget.

Administered items related to this program component include: volunteer management program for volunteer resource centres.

2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000Annual administered expenses: National Compact, Philanthropy and Volunteering 6,001 5,513 5,528 5,546 5,663

Departmental appropriation:1

Domestic Policy 60,808 55,384 54,303 54,851 55,335 Expenses not requiring appropriation in

the Budget year2 4,124 3,405 3,152 2,921 2,746 Total program expenses 70,933 64,302 62,983 63,318 63,744

1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and‘Revenue from independent sources (s31)’.


Reader note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. Corporate support costs are allocated across program components, based on average staffing levels, to reflect the full cost of delivery.

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Program Component 1.1.1 DeliverablesDomestic Policy Group Policy advice and support to the Prime Minister, the Cabinet, portfolio

ministers and parliamentary secretaries in key reform areas.

Whole-of-government coordination and monitoring of delivery of the government’s decisions, policies and strategic priorities in relation to COAG.

Contribution to government decision making processes, including Cabinet and its committees.

Development of reform proposals with other Commonwealth agencies and state and territory governments for consideration by COAG and coordination of COAG’s work program.

Effective coordination and administration of the volunteer management program in the Office for the Not-for-Profit Sector.

Deliver a White Paper on ‘Australia in the Asian Century’ for consideration by Cabinet to support effective decision-making and policy engagement on decisions related to the White Paper.

COAG Reform Council Reports to COAG on the monitoring and assessment of the

performance of governments in implementing nationally agreed reforms.

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Program Component 1.1.1 Key Performance IndicatorsDomestic Policy Group High level of satisfaction of the Prime Minister, the Cabinet and

Cabinet committee chairs, portfolio ministers and the parliamentary secretaries with the quality and timeliness of advice, briefing, activities and/or support.

Satisfaction of other central agencies, portfolio departments and other key stakeholders, with the cooperation and collaboration of the department.

Compliance with all relevant legislation.

High level of satisfaction of the Prime Minister and of other agencies with the department’s contribution to COAG. Successful coordination and support for COAG meetings and ensuring a well-coordinated delivery of the broad COAG agenda.

Number of individuals assisted towards volunteering: 250,000.

High level of satisfaction with the quality of support provided by the departmental secretariat to bodies supported by the department, including the Australian Social Inclusion Board and the Not-for-Profit Sector Reform Council.

Grants are administered in compliance with reporting mechanisms, objectives and other provisions of the grant funding deeds.

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Program component 1.1.2: National Security and International Policy

Program Component 1.1.2 ObjectivesThe program is delivered through the National Security and International Policy Group, which: provides advice, coordination and leadership in national security

policy and planning

provides advice, coordination and leads the development of a secure, coordinated and effective national security information management environment and the strategic leadership and coordination of whole-of-government cyber policy

advances the government’s foreign, trade, overseas aid and international law priorities through provision of policy advice, and related whole-of-government leadership and coordination, including oversight of policy implementation across government

advances the government’s national security objectives through leadership of the National Security Community and provision of advice, coordination and leadership on integrated, whole-of-government policy, priorities and strategy in the areas of defence, homeland and border security, intelligence coordination and cooperation.

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Program Component 1.1.2 ExpensesNo new funding has been provided to the National Security and International Policy program in the 2012-13 Budget.

Administered items related to this program component include: national counter-terrorism committee secretariat.


$'000 $'000 $'000 $'000 $'000Annual administered expenses: National counter-terrorism committee secretariat 111 111 111 112 113


National Security and International Policy2 28,531 24,644 24,301 24,090 24,322 Research support for counter-terrorism

grants program3 3,611 - - - -

Expenses not requiring appropriation in


1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2 The decrease from 2011-12 to 2012-13 largely reflects the completion of the ‘2011 Independent Review into the Intelligence Community’.

3 Research support for the counter-terrorism grants program transferred to the Department of Defence in 2011-12.



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Program component 1.1.2 Deliverables Provide strategic leadership and coordination of Australia’s national

security community.

Policy advice, briefing and support to the Prime Minister on foreign, trade and aid policy matters, priorities and strategy, including bilateral relations, and engagement with regional and international priorities and ensure we are well-placed as a nation to compete and prosper in the Asia Pacific Century.

Policy advice, briefing and support to the Prime Minister on defence matters, in particular Australian Defence Force operations; implementation of the Defence White Paper; international defence cooperation and engagement; Force 2030 capability goals; force posture and structure; and the Defence Strategic Reform Program.

Coordination and policy advice on deployments of the Australian Civilian Corps; the Centenary of ANZAC commemorative program; the development of Australia’s space policy; and oversight of the implementation of new access arrangements in the Woomera Prohibited Area.

Coordination and leadership of the National Intelligence Community including through support for the National Security Adviser’s chairing of the National Intelligence Coordination Committee and its subordinate processes; and provision of intelligence policy advice.

Policy advice, briefing and support to the Prime Minister and Parliamentary Secretary to the Prime Minister on: coordination and leadership in the development of a secure, coordinated and effective national security environment, including information management; strategic leadership and coordination of whole-of-government cyber policy, including cyber security policy; non-proliferation and disarmament; counter-terrorism; border protection; critical infrastructure protection; security of hazardous materials; and law enforcement matters.

Support the Prime Minister on international engagements, including overseas visits, leader level meetings and at regional and multilateral meetings and visits to Australia by heads of government and state.

Coordinated development and implementation of policy related to international priorities across government.

Periodic review and update of strategic national security documents such as the National Security Statement and Coordinated National Security Budget.

Leadership and coordinated whole-of-government responses to major

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national security related crises or emergencies.

Leadership and policy coordination of counter people smuggling and irregular migration issues, driving policy development and overseeing implementation of whole-of-government approaches to deter people smuggling activities in our region.

Implementation of relevant recommendations of the 2011 Independent Review of the Intelligence Community.

Coordination and leadership of national approaches to counter terrorism, through support for the Deputy National Security Adviser’s role as chair of the National Counter-Terrorism Committee and its subordinate processes, including secretariat support and policy advice (administered item).

Support to the office of the Independent National Security Legislation Monitor.

Program Component 1.1.2 Key Performance Indicators High level of satisfaction of the Prime Minister, the Cabinet and

Cabinet Committee chairs and the Parliamentary Secretary with the quality and timeliness of advice, briefing, activities and/or support.

Successful national leadership and coordination of the national security community and the national intelligence community, including on cyber policy and information sharing.

Advancement of the government’s international priorities that promote Australia’s security, prosperity, international profile and influence.

Provision of whole-of-government responses to major national security related crises or emergencies.

Successful development and whole-of-government integration of foreign and international security strategies as required by the government.

High level satisfaction with the quality of support provided by the departmental secretariat to bodies supported by the department, including the National Counter-Terrorism Committee and the Independent National Security Legislation Monitor.



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Program Component 1.1.3: Support Services for Government Operations

36


Program Component 1.1.3 ObjectivesPM&C supports government operations by: providing secretariat services for the Cabinet, Cabinet committees and

the Federal Executive Council, and overseeing programming of Cabinet business and access to and custody of Cabinet documents

advising on legislation programming, parliamentary affairs, ministerial arrangements, machinery of government, public service matters, (including governance and accountability), the Lobbying Code of Conduct and the Register of Lobbyists, royal commission and other inquiries, access to government information and national honours and symbols

supporting the development of legal, constitutional, territories and electoral policy

managing a range of support functions for ministerial offices in the Prime Minister and Cabinet Portfolio, including the coordination of briefings, correspondence and advice

coordination and delivery of departmental services to the portfolio ministers and parliamentary secretaries

support for the audit committee and policy relating to corporate governance activities and risk management

delivering the Community Cabinet program

ongoing monitoring of the implementation of APS Reform across the APS and delivery of specific elements for which PM&C is responsible.

Program Component 1.1.3 ExpensesNo additional funding has been provided to support services for government operations in the 2012-13 Budget.

Administered items related to this program component include: Parliament House Briefing Room

grant payments to the National Australia Day Council Limited

compensation and legal expenses.

37



$'000 $'000 $'000 $'000 $'000Annual administered expenses: Parliament House Briefing Room 417 420 427 434 440 National Australia Day Council Limited 3,388 3,394 3,430 3,463 3,504 Compensation and legal expenses 113 114 116 118 120


Support services for government operations 31,394 30,058 28,917 29,715 29,976





Reader note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. Corporate support costs are allocated across program components, based upon average staffing levels, to reflect the full cost of delivery.

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Program Component 1.1.3 Deliverables Provision of secretariat and support services for the Cabinet Secretary,

the Cabinet, its committees and the Federal Executive Council.

Provision of services for the Prime Minister, portfolio ministers, parliamentary secretaries and their ministerial offices.

Management of visits to Australia by guests of the government and the delivery of support for major events.

Management of PM&C’s internal governance arrangements (including the internal audit program).

Whole-of-government coordination and monitoring of delivery of the government’s decisions, policies and strategic priorities in relation to the Cabinet Implementation Unit.

Advice and support on parliamentary, machinery of government, legal policy and information access matters.

Administration of the Register of Lobbyists and the Lobbying Code of Conduct.

Policy advice and operational support in relation to Australia’s honours system and national symbols.

Administration of government grant funding for the National Australia Day Council Limited.

Delivery of Community Cabinet meetings.

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Program component 1.1.3 Key Performance Indicators High level of satisfaction of the Prime Minister, the Cabinet and

Cabinet committee chairs, portfolio ministers and the parliamentary secretaries, the Governor-General and Federal Executive Council, with the quality and timeliness of advice, briefing, activities and/or support.




Program Component 1.1.4: Group of 20 Meeting 2014

Program Component 1.1.4 Objectives To successfully deliver Australia’s hosting of the Group of 20 (G20) in

2014 in a safe and secure manner.

To influence global economic rule setting institutions and outcomes and strengthen our international standing and engagement with the major economies of the world through successfully hosting the G20 in 2014.

Program Component 1.1.4 Expenses Additional funding was provided to PM&C in the 2012-13 Budget to

deliver the G20 in 2014.


$'000 $'000 $'000 $'000 $'000


Group of 20 Meeting 2014 - 24,106 78,281 218,349 4,568 Expenses not requiring appropriation in

the Budget year2 - - 3,168 4,222 3,498 Total program expenses - 24,106 81,449 222,571 8,066



Program Component 1.1.4 Deliverables

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The G20 Taskforce will have responsibility for policy development, coordination and operational arrangements.

The G20 Taskforce will coordinate all Australian Government security arrangements for G20 meetings.

41


42


Program Component 1.1.4 Key Performance Indicators High level of satisfaction of the Prime Minister, the Cabinet and

Cabinet committee chairs, portfolio ministers and the parliamentary secretaries, with the quality and timeliness of advice, briefing, activities and/or support.

Satisfaction of other central agencies, portfolio departments and other key stakeholders with the cooperation and collaboration of the department.

The successful promotion of Australia through the meeting outcomes and arrangements.


Program 1.2: Official and Ceremonial Support

Program 1.2 ObjectivesThis program: supports the operations of the Prime Minister’s official residences

provides staffing and administrative services to former and designated Governors-General

provides high-level support for major events and meetings, such as visits by heads of state, ceremonies and state occasions, and coordinates the logistical arrangements for the Prime Minister’s overseas visits.

Program 1.2 ExpensesNo additional funding was provided to the Official and Ceremonial Support program in the 2012-13 Budget.

The official and ceremonial support program comprises three components: operations support of the Prime Minister’s official residences support to former Governors-General state occasions and official visits.

43



$'000 $'000 $'000 $'000 $'000

Annual administered expenses: Prime Minister's off icial residences 1,681 1,722 1,751 1,850 1,936

Support to the former Governors-General1 498 423 3,486 387 298 State occasions and official visits 5,860 3,256 3,292 3,450 3,632


Official and ceremonial support 3,139 2,417 2,356 2,398 2,420 Support for off icial establishments 748 734 711 723 727 Expenses not requiring appropriation in

the Budget year3 249 209 191 177 165 Total program expenses 12,175 8,761 11,787 8,985 9,178

1 The annual expense figure reflects the unwinding of the discount on the provision for future entitlements for each former Governors-General. The increase in 2013-14 reflects the expected write-on of a provision.




Program 1.2 Deliverables Provision of support for the operations of the Prime Minister’s official

residences.

Provision of entitlements to former Governors-General (excluding pension entitlements).

Secretariat support for the Official Establishments Trust.

Facilitation of visits by heads of state, ceremonies and state occasions.

Coordination of logistical arrangements for the Prime Minister’s overseas visits.

Hospitality for overseas dignitaries and official ceremonies.

Program 1.2 Key Performance Indicators High level of satisfaction of the Prime Minister, the Cabinet and

Cabinet committee chairs, portfolio ministers and the parliamentary secretaries, former Governors-General and the Governor-General designate with the quality and timeliness of advice, briefing, activities and/or support.

Satisfaction of departments, agencies and other key stakeholders, with the cooperation and collaboration of the department.

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High level of satisfaction with the quality of support provided by departmental secretariat to bodies supported by the department, including the Official Establishments Trust.


High level of satisfaction of key stakeholders with the management of the government’s hospitality for overseas dignitaries, official ceremonies and program of official visits.

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2012-13 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between yearsPM&C does not have any movement of administered funds between years.

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3.1.2 Special AccountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 (FMA Act) or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by PM&C.

Table 3.1.2: Estimates of Special Account Flows and BalancesOpening Closingbalance Receipts Payments Adjustments balance2012-13 2012-13 2012-13 2012-13 2012-132011-12 2011-12 2011-12 2011-12 2011-12

Outcome $'000 $'000 $'000 $'000 $'0001 - 1 1 - -

- 1 1 - -

2 - - - - -

255 - - (255) -

2 - - - - - 1,888 1,925 1,983 (1,830) -

2 - - - - - 551 - - (551) -

2 - - - - -

227 - 132 (95) -

2 - - - - -

5,547 646 458 (5,735) -

2 - - - - -

2,363 836 488 (2,711) -

3 - - - - -

920 317 296 (941) -

Total Special Accounts 2012-13 Budget estimate - 1 1 - -

Total Special Accounts2011-12 actual 11,751 3,725 3,358 (12,118) -

Return of Indigenous Cultural Property Special Account - s. 20 FMA Act Det 2005/45 (D)

Sport and Recreation Special Account - s. 20 FMA Act Det 2006/20 (A)

Service for other entities and trust monies - s. 20 FMA Act Det 2008/13 (D)1

National Cultural Heritage Account - s. 21 FMA Act [Protection of Movable Cultural Heritage Act 1986] (A)

Art Rental Special Account - s. 20 FMA Act Det 2006/18 (D)

Cultural Special Account - s. 20 FMA Act Det 2011/18 (D)

National Collections Special Account - s. 20 FMA Act Det 2005/42 (D)

National Portrait Gallery Special Account - s. 20 FMA Act Det 2005/42 (D)

1 In 2012-13 PM&C is only responsible for one special account as the remaining accounts transferred to DRALGAS as a result of the AAO of 14 December 2011.

(D) = Departmental(A) = AdministeredNote: The service for other entities and trust monies special account is used to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth. As such, these financial inflows do not represent resources available for use by the department and are not included in Table 1.1 (Resource statement).

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3.1.3 Australian Government Indigenous ExpenditureAustralian Government Indigenous expenditure for PM&C decreases from $47.8m in 2011-12 to $0.9m in 2012-13. This decrease is primarily as a result of the transfer of the arts and sport function to the DRALGAS as a result of the AAO change of 14 December 2011.

Table 3.1.3: Australian Government Indigenous ExpenditureOther Total Program

Bill Bill Special TotalNo. 1 No. 2 approp approp$'000 $'000 $'000 $'000 $'000 $'000

Department of the Prime Minister and Cabinet

Outcome 1Departmental 2012-13 918 - - 918 - 918 1.1Departmental 2011-12 1,194 - - 1,194 - 1,194 1.1Total outcome 2012-13 918 - - 918 - 918 1.1Total outcome 2011-12 1,194 - - 1,194 - 1,194 1.1

Outcome 2Administered 2012-13 - - - - - - 2.1Administered 2011-12 8,184 - - 8,184 - 8,184 2.1Departmental 2012-13 - - - - - - 2.1Departmental 2011-12 28,319 - - 28,319 - 28,319 2.1Total outcome 2012-13 - - - - - - 2.1Total outcome 2011-12 36,503 - - 36,503 - 36,503 2.1

Outcome 3Administered 2012-13 - - - - - - 3.1Administered 2011-12 9,183 - - 9,183 - 9,183 3.1Departmental 2012-13 - - - - - - 3.1Departmental 2011-12 913 - - 913 - 913 3.1Total outcome 2012-13 - - - - - - 3.1Total outcome 2011-12 10,096 - - 10,096 - 10,096 3.1

Total administered 2012-13 - - - - - - Total administered 2011-12 17,367 - - 17,367 - 17,367

Total departmental 2012-13 918 - - 918 - 918Total departmental 2011-12 30,426 - - 30,426 - 30,426

Total AGIE 2012-13 918 - - 918 - 918Total AGIE 2011-12 47,793 - - 47,793 - 47,793

Appropriations

Note: 2011-12 reflects the part year expenditure of the arts and sport function. This function was transferred to DRALGAS as at 1 February 2012.

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statementsThe focus of the 2012-13 Portfolio Budget Statements is on resourcing for PM&C from 2012-13 across the forward years. As such information on estimated expenses for previous PM&C Outcomes 2 and 3 relating to the arts and sport functions have not been included in the program tables within Section 2 as the functions transferred to DRALGAS during 2011-12. All expenses incurred by PM&C during 2011-12, including those related to the arts and sport functions, are reflected in the financial statements on the following pages. For the reasons outlined above, the sum of estimated 2011-12 expenses in the program component tables and the total 2011-12 expenses reflected in the income statement will differ.

Departmental itemsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2012-13. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided each year.

Administered itemsThe 2012-13 administered expense figure of $16.5m in Table 1.1 includes the cash appropriation for payments for former Governors-General entitlements. A provision for the total estimated value of these entitlements is recognised in the financial statements at the time each Governor-General retires. Accordingly, payment of these entitlements results in a reduction to the provision rather than an operating expense.

The schedule of budgeted income and expenses administered on behalf of government (Table 3.2.7) includes non-cash appropriation items including depreciation and amortisation expense, make good and the unwinding of the discount on the provision for former Governors-General entitlements. The following table shows the reconciliation between the 2012-13 appropriation, as per Table 1.1, and the expense shown in Table 3.2.7.

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Reconciliation of differences in administered resourcing (Table 1.1) and financial statements (Table 3.2.7)

Budget Estimate 2012-13

$'000

Table 3.2.7 Operating expenses 14,953 Less

Depreciation and amortisation expense (118) Unw inding of discount on former Governors-General entitlements provision (423)

plus

Capital budget 243 Payments from the former Governors-General entitlement provision 1,847

Table 1.1 Administered expenses - total ordinary annual services 16,502

3.2.2 Analysis of budgeted financial statementsDepartmental

Income Statement

Revenue from government in 2012-13 has decreased from $171.5m in 2011-12 to $123.4m in 2012-13. The decrease primarily reflects the full year impact of the AAO change of 14 December 2011. This decrease is partially offset by an increase in revenue from government of $24.1m for Australia to host the G20 meeting during 2014.

The department is budgeting for a $2.6m operating loss in 2011-12 relating to the timing of costs associated with the delivery of CHOGM 2011. The department recorded an underspend of $6.6m relating to CHOGM in 2010-11.

Revenue and expenses for 2013-14 and 2014-15 are expected to increase and remain high while the G20 2014 Taskforce remains in operation, and are expected to return to normal levels in 2015-16 when the taskforce will cease operations.

Balance Sheet

The budgeted net asset position for 2012-13 of $33.0m has slightly increased from the position in 2011-12 as a result of asset purchases relating to G20 including fitout and security requirements for the first year of operation.

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Net assets are estimated to decrease over the forward estimates as fixed assets are depreciated in line with the department’s Capital Management Plan.

51


Administered

Schedule of budgeted income and expenses administered on behalf of government

Budgeted expenses administered on behalf of government will decrease from $594.8m in 2011-12 to $14.9m in 2012-13. The $579.9m decrease primarily reflects the transfer of the Office for the Arts and Office for Sport administered programs and the CAC Act body payments following the AAO change of 14 December 2011.

Schedule of budgeted assets and liabilities administered on behalf of government

The revised budgeted total administered assets for 2012-13 of $3.3m has significantly decreased from the position published in the 2011-12 Portfolio Budget Statements. The changes are attributable to the transfer of CAC Act bodies (Administered Investments) and the National Institute of Dramatic Arts building to DRALGAS following the AAO change of 14 December 2011.

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3.2.3 Budgeted financial statements tablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)(for the period ended 30 June)

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate estimate

2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 101,098 85,368 90,243 84,282 71,165

Supplier expenses 98,189 54,209 100,840 249,397 49,061 Grants 1,077 557 557 - - Depreciation and amortisation 7,337 6,889 9,490 9,330 8,948 Finance costs 23 23 24 24 25 Total expenses1 207,724 147,046 201,154 343,033 129,199 LESS: OWN-SOURCE INCOMERevenueSale of goods and rendering of services 22,219 13,980 14,435 20,163 14,867 Total revenue 22,219 13,980 14,435 20,163 14,867 GainsSale of assets - - - - 3,168 Other 4,024 2,814 2,796 3,574 2,904 Total gains 4,024 2,814 2,796 3,574 6,072 Total own-source income 26,243 16,794 17,231 23,737 20,939 Net cost of (contribution by)

services 181,481 130,252 183,923 319,296 108,260 Revenue from Government 171,544 123,363 174,433 309,966 99,312 * * * *Surplus (Deficit) attributable to

the Australian Government (9,937) (6,889) (9,490) (9,330) (8,948) Total comprehensive income

attributable to the Australian Government (9,937) (6,889) (9,490) (9,330) (8,948)

Note: Impact of Net Cash Appropriation Arrangements2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations.2 (2,600) - - - -

plus depreciation/amortisation expenses previously funded through revenueapproriations3 7,337 6,889 9,490 9,330 8,948

Total Comprehensive Income(loss) - as per the Statement of Comprehensive Income (9,937) (6,889) (9,490) (9,330) (8,948)

1 Drop in expenses from 2014-15 to 2015-16 relates to the completion of the G20 operations.2 Operating loss relates to differences in the timing of actual CHOGM expenditure compared to budget.3 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet(as at 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and equivalents 1,000 1,000 1,000 1,000 1,000Trade and other receivables 21,341 20,434 21,677 27,877 23,163Other 5,501 3,461 3,574 6,500 3,121

Total financial assets 27,842 24,895 26,251 35,377 27,284Non-financial assets

Land and buildings 850 - - - - Property, plant and equipment 40,518 46,581 41,624 35,988 30,265Intangibles 4,058 3,573 3,153 2,834 2,580Heritage and cultural 143 - - - - Prepayments 5,442 5,491 12,210 12,304 5,495

Total non-financial assets 51,011 55,645 56,987 51,126 38,340Total assets 78,853 80,540 83,238 86,503 65,624LIABILITIESPayables

Suppliers 7,012 6,799 11,383 16,395 9,340Other 8,940 9,781 10,339 15,499 10,081

Total payables 15,952 16,580 21,722 31,894 19,421Interest bearing liabilities

Leases 5,258 5,463 5,459 5,418 5,200Total interest bearing l iabili ties 5,258 5,463 5,459 5,418 5,200Provisions

Employee provisions 26,898 25,462 26,916 25,138 21,226Total provisions 26,898 25,462 26,916 25,138 21,226Total liabilities 48,108 47,505 54,097 62,450 45,847Net assets 30,745 33,035 29,141 24,053 19,777EQUITY *

Contributed equity 16,765 28,239 32,351 35,727 39,134Reserves 8,175 8,175 8,175 8,175 8,175Retained surplus

(accumulated def icit)Total equity 30,745 33,035 29,141 24,053 19,777

5,805 (3,379) (11,385) (19,849) (27,532)

* 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2012-13)

Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2012Balance carried forw ard from

previous period 5,805 8,175 16,765 30,745 Adjustment for changes in

accounting policies - - - - Adjusted opening balance 5,805 8,175 16,765 30,745 Comprehensive income

Surplus (deficit) for the period (6,889) - - (6,889) Total comprehensive income recognised directly in equity (6,889) - - (6,889)

Attributable to the Australian Government (6,889) - - (6,889) Contributions by owners

Contribution/(Distribution) of Equity (2,294) - (993) (3,287) Appropriation (equity injection) - - 9,600 9,600 Departmental Capital Budget (DCB) - - 2,867 2,867

Sub-total transactions with owners (2,294) - 11,474 9,180 Estimated closing balance as at 30 June 2013 (3,379) 8,175 28,239 33,035 Closing balance attributable to the

Australian Government (3,379) 8,175 28,239 33,035 Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Budgeted departmental statement of cash flows(for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 208,445 122,768 173,268 308,253 97,599Sale of goods and rendering of services 26,695 19,585 15,643 19,046 26,486Net GST received 7,096 3,263 7,678 20,262 1,883

Total cash received 242,235 145,615 196,589 347,560 125,969Cash used

Employees 102,566 86,359 88,337 85,598 80,070Suppliers 111,767 58,699 107,695 261,962 49,067Grants 6,780 557 557 - -

Total cash used 221,113 145,615 196,589 347,560 129,137Net cash from (used by)

operating activities 21,122 - - - (3,168) INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment - - - - 3,168

Total cash received - - - - 3,168

Cash usedPurchase of property, plant

and equipment 12,717 12,467 4,112 3,376 2,971Total cash used 12,717 12,467 4,112 3,376 2,971Net cash from (used by)

investing activities (12,717) (12,467) (4,112) (3,376) 197 FINANCING ACTIVITIESCash received

Contributed equity 4,548 12,467 4,112 3,376 2,971Total cash received 4,548 12,467 4,112 3,376 2,971Net cash from (used by)

financing activities 4,548 12,467 4,112 3,376 2,971Net increase (decrease)

in cash held 12,953 - - - - Cash and cash equivalents at the

beginning of the reporting period 8,013 1,000 1,000 1,000 1,000Cash received - restructuring (19,966) - - - -

Cash and cash equivalents at the end of the reporting period 1,000 1,000 1,000 1,000 1,000

Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard

actual estimate estimate estimate estimate2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 3,985 2,867 3,112 3,376 3,407 Equity injections - Bill 2 563 9,600 1,000 - -

Total capital appropriations 4,548 12,467 4,112 3,376 3,407 Total new capital appropriations Provided for:

Purchase of non-financial assets 4,548 12,467 4,112 3,376 3,407 Total Items 4,548 12,467 4,112 3,376 3,407 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 3,988 9,600 1,000 - -

Funded by capital appropriation - DCB 3,985 2,867 3,112 3,376 2,971

Funded internally from departmental

resources2 4,744 - - - - TOTAL 12,717 12,467 4,112 3,376 2,971 RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 12,717 12,467 4,112 3,376 2,971 Total cash used to

acquire assets 12,717 12,467 4,112 3,376 2,971 1 Includes both current and prior year Bill 2 appropriations. The increase in 2012-13 reflects the equity

injection to support the G20 taskforce.2 Includes the following sources of funding: current and prior year appropriations (excluding amounts from

the DCB) and s31 relevant agency receipts.DCB = Departmental Capital BudgetPrepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of Asset Movements (2012-13) Asset Category

Other property, Intangibles Totalplant and

equipment$'000 $'000 $'000

As at 1 July 2012Gross book value 52,074 7,849 59,923 Accumulated depreciation/amortisation

and impairment 11,556 3,791 15,347 Opening net book balance 40,518 4,058 44,576 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary

annual services1 2,540 327 2,867 By purchase - appropriation equity2 9,600 - 9,600 Total additions 12,140 327 12,467 Other movementsDepreciation/amortisation expense 6,078 812 6,889 Disposals

As at 30 June 2013Gross book value 64,215 8,176 72,390 Accumulated depreciation/amortisation

and impairment 17,634 4,603 22,236 Closing net book balance 46,581 3,573 50,154

1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2012-13 for the DCB.

2 "Appropriation equity " refers to equity injections provided through Appropriation Bill (No.2) 2012-13.


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Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTEmployee benefits 907 928 952 971 992 Suppliers1 21,373 4,466 7,590 4,741 4,990 Grants 147,877 9,018 9,067 9,121 9,280 Depreciation and amortisation 1,118 118 126 140 146 Finance costs 498 423 406 387 298 Payments to CAC Act bodies2 423,037 - - - -

Total expenses administeredon behalf of Government 594,810 14,953 18,140 15,359 15,706

LESS:Non-taxation revenue

Interest 101 - - - -

Other revenue 299 - - - - Total non-taxation revenue 400 - - - - Net Cost of (contribution by)services (594,410) (14,953) (18,140) (15,359) (15,706) Surplus (Deficit) (594,410) (14,953) (18,140) (15,359) (15,706) Total comprehensive income (loss) (594,410) (14,953) (18,140) (15,359) (15,706)

1 Increase in 2013-14 relates to the provision for projected future entitlements for former Governors-General.

2 Reflects the period PM&C was responsible for administering CAC Act body payments prior to the transfer of the arts and sports function to DRALGAS as a result of the AAO changes of 14 December 2011.


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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

Estimated Budget Forw ard Forw ard Forw ardactual estimated estimate estimate estimate

2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assetsReceivables 276 - - - - Other investments1 820 820 820 820 820

Total financial assets 1,096 820 820 820 820 Non-financial assets

Property, plant and equipment 2,363 2,488 2,752 2,864 2,971 Total non-financial assets 2,363 2,488 2,752 2,864 2,971 Total assets administered

on behalf of Government 3,459 3,308 3,572 3,684 3,791 LIABILITIES ADMINISTERED ON

BEHALF OF GOVERNMENTPayables

Suppliers 495 313 531 332 349 Other 59 63 67 70 29

Total payables 554 376 598 402 378 Provisions

Employee provisions 352 360 369 377 385 Other2 9,581 8,130 9,261 7,437 5,735

Total provisions 9,933 8,490 9,630 7,814 6,120

Total liabilities administeredon behalf of Government 10,487 8,866 10,228 8,216 6,498

1 Investment in National Australia Day Council.2 Relates to the provision for former Governors-General. The provision reduces from 2013-14 as

payments are made against the provision rather than expensed in accordance with AASB 119.Prepared on Australian Accounting Standards basis.

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Table 3.2.9: Schedule of budgeted administered cash flows(for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 10,162 276 - - -

Interest 266 - - - - Total cash received 10,428 276 - - - Cash used

Grant payments 147,497 9,018 9,067 9,121 9,280 Suppliers 31,692 11,607 14,905 12,613 12,844 Employees 899 920 943 963 984 CAC Act body payment item 423,037 - - - -

Total cash used 603,125 21,545 24,915 22,697 23,108 Net cash from (used by)

operating activities (592,697) (21,269) (24,915) (22,697) (23,108) INVESTING ACTIVITIESCash used

Purchase of property, plantand equipment 2,033 243 390 251 253

CAC Act body investments 25,587 - - - - Total cash used 27,620 243 390 251 253 Net cash from (used by)

investing activities (27,620) (243) (390) (251) (253) Net increase (decrease) in

cash heldCash and cash equivalents at

beginning of reporting period 148 - - - - Cash from Off icial Public Account for:

- Appropriations 630,745 21,788 25,305 22,948 23,361 630,893 21,788 25,305 22,948 23,361

Cash to Off icial Public Account for:- Appropriations (10,576) (276) - - -

(10,576) (276) - - - Cash and cash equivalents at endof reporting period - - - - -


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Table 3.2.10: Schedule of Administered Capital BudgetEstimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (ACB) 1,394 243 390 251 253 Administered assets and

liabilities - Bill 2 175 - - - - Total capital appropriations 1,569 243 390 251 253 Total new capital appropriationsRepresented by:

Purchase of non-financial assets 1,569 203 390 251 253 Other Items - 40 - - -

Total Items 1,569 243 390 251 253 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 175 - - - - Funded by capital appropriation - ACB 1,394 243 390 251 253 Funded internally from

prior year depreciation funding1 464 - - - -

TOTAL 2,033 243 390 251 253

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 2,033 243 390 251 253 Total cash used to

acquire assets 2,033 243 390 251 253 1 Relates to functions transferred to DRALGAS as a result of the AAO change of 14 December 2011.ACB= Administered Capital BudgetPrepared on Australian Accounting Standards basis.

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Table 3.2.11: Schedule of Asset Movements — Administered

Other Totalproperty,plant and

equipment$'000 $'000

As at 1 July 2012Gross book value 2,459 2,459 Accumulated depreciation/amortisation

impairment 96 96 Opening net book balance 2,363 2,363 CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 243 243 Total additions 243 243 Other movementsDepreciation/amortisation expense 118 118 As at 30 June 2013Gross book value 2,702 2,702 Accumulated depreciation/amortisation

impairment 214 214 Closing net book balance 2,488 2,488

Asset Category


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Australian National Audit Office


65

AUSTRALIAN NATIONAL AUDIT OFFICE

Section 1: Agency overview and resources..............................................................631.1 Strategic Direction Statement..................................................................................63

1.2 Agency Resource Statement...................................................................................64

1.3 Budget Measures.....................................................................................................65

Section 2: Outcomes and planned performance.......................................................662.1 Outcomes and performance information..................................................................66

Section 3: Explanatory tables and budgeted financial statements.........................763.1 Explanatory tables...................................................................................................76

3.2 Budgeted Financial Statements...............................................................................77

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ANAO Budget Statements

AUSTRALIAN NATIONAL AUDIT OFFICE



The Australian National Audit Office’s (ANAO) vision is to be an international leader on the provision of independent public sector audit and related services.

In 2012-13, the emphasis will be on: delivering a range of timely and relevant products on topics that provide

opportunities for improvement in administration across the Australian Government Public Sector

building our relationship with the parliament, particularly the Joint Committee of Public Accounts and Audit (JCPAA), to promote our work and improve the understanding of our work and our contribution to improving public administration

working with entities’ audit committees to promote the implementation of our report recommendations

pursuing initiatives to improve the efficient delivery of the audit program

maintaining our involvement in furthering professional and public sector development nationally and internationally, and in assisting audit institutions in developing nations.

The ANAO’s two planned outcomes will be met through the achievement and implementation of the ANAO’s objectives and strategies in four key result areas: clients

product and services

people

business performance.

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In order to achieve our outcomes, the ANAO recovers some of its costs from Commonwealth authorities and companies and their subsidiaries subject to the Commonwealth Authorities and Companies Act 1997 based on a scale determined by the Auditor-General under section 14 of the Auditor-General Act 1997. These fees are calculated based in an output cost attribution model. Revenues from these audit fees are paid into the Official Public Account and are not available to the ANAO. The revenue and receipts are shown in Table 3.2.7 (Schedule of budgeted income and expenses administered on behalf of government) and Table 3.2.9 (Schedule of budgeted administered cash flows), respectively.

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Table 1.1: ANAO Resource Statement - Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 23,031 - 23,031 21,924 Departmental appropriation3 - 74,722 74,722 74,891 s31 relevant agency receipts4 - 3,324 3,324 3,324 Total 23,031 78,046 101,077 100,139

Total ordinary annual services A 23,031 78,046 101,077 100,139

Other servicesTotal other services B - - - - Total available annual

appropriations 23,031 78,046 101,077 100,139 Special appropriationsSpecial appropriations limited

by criteria/entitlementAuditor-General remuneration and expense - Auditor-General Act 1997 . Schedule 1, sections 3 and 7 - 482 482 474

Total special appropriations C - 482 482 474 Total appropriations excluding

Special Accounts 23,031 78,528 101,559 100,613 Special AccountsTotal Special Account D - - - - Total resourcingA+B+C+D 23,031 78,528 101,559 100,613 Total net resourcing for agency 23,031 78,528 101,559 100,613


further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 relevant agency receipts — estimate.Note: All figures are GST exclusive.

1.3 BUDGET MEASURES

There are no Budget measures relating to the ANAO in the 2012-13 Budget.

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The ANAO’s outcomes are described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the ANAO in achieving government outcomes.

The ANAO has management information systems in place to allow it to fully cost all audit and support activities. All audit-related costs are directly costed to the relevant audit or related services. All other costs not directly attributable to audits or related services are allocated having regard to the nature of the expenditure.


Outcome 1 StrategyThe key strategy by which the ANAO will seek to achieve this outcome is to contribute, through audit services, to providing assurance to individual agencies, the Executive and the parliament about the financial reporting and administration of public sector entities.

The ANAO also audits the annual Consolidated Financial Statements of the Australian Government, which present the consolidated whole-of-government financial result inclusive of all Australian Government controlled entities, including entities outside the general government sector.

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Table 2.1 provides an overview of the total expenses for Outcome 1.

Table 2.1: Budgeted Expenses for Outcome 12011-12 2012-13

Estimated Estimatedactual expenses

expenses$'000 $'000

Program 1.1: Assurance Audit ServicesDepartmental expenses

Departmental appropriation 1 44,650 46,205 Special appropriations 237 241

Expenses not requiring appropriation in the Budget year 2 1,121 1,046

Total for Program 1.1 46,008 47,492

Outcome 1 Totals by appropriation typeDepartmental expenses


Expenses not requiring appropriation in the Budget year 2 1,121 1,046

Total expenses for Outcome 1 46,008 47,492 2011-12 2012-13

Average Staffing Level (number) 192 192



2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.


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Program 1.1: Assurance Audit Services

Program 1.1 ObjectivesThe objectives of this program are: to audit the annual financial statements of Australian Government entities

to give assurance to stakeholders that an entity’s financial statements fairly represent its financial operations and financial position at year end

to contribute to improvements in the financial administration of Australian Government entities by making recommendations arising from audit service activities

to further professional and public sector development nationally and internationally, and assist audit institutions in developing nations.

Program 1.1 ExpensesSignificant expenditure includes employee expenses (53%) and contractors (31%).


$'000 $'000 $'000 $'000 $'000

Special Appropriations

Auditor-General remuneration and expenses - Auditor-General Act 1997 237 241 245 249 253

Annual departmental expenses:Employee expenses 24,424 25,286 25,286 23,986 23,733 Suppliers 20,226 20,919 21,488 18,718 20,812


the Budget year 1 1,121 1,046 1,046 910 910 Total departmental expenses 46,008 47,492 48,065 43,863 45,708 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense and amortisation

expense.

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Program 1.1 Components2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'0001.1.1 - Component 1

Special appropriations:Auditor-General remuneration and expenses - Auditor-General Act 1997 237 241 245 249 253 Annual departmental expenses:

Financial statement audit reports 43,013 44,403 44,938 40,986 42,716 Other assurance reports 919 949 961 876 913 Assistance to Parliament 460 475 480 438 457 National and international representations and developing nation support 1,379 1,424 1,441 1,314 1,370

Total component expenses 46,008 47,492 48,065 43,863 45,709 Total program expenses 46,008 47,492 48,065 43,863 45,709

Program 1.1 Deliverables The deliverables for the primary components of this program are listed below.

2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ard

Deliverables budget year 1 year 2 year 3Number of f inancial statement audit opinions to be issued

250 250 250 250 250

Other regulatory assurance reports 59 59 59 59 59Number of f inancial statement related reports produced

2 2 2 2 2

Engagements that contribute to public sector auditing and support developing nations

20 20 20 20 20

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Program 1.1 Key Performance Indicators 2011-12 2012-13 2013-14 2014-15 2015-16

Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators budget target year 1 year 2 year 3

Percentage of ANAO delivered audit opinions on f inancial statements received from all Australian government entities that are subsequently tabled in the parliament

100% 100% 100% 100% 100%

Percentage of Parliamentarians surveyed expressed satisfaction w ith ANAO products and services directed tow ards improving public sector administration

90% 90% 90% 90% 90%

Note: The ANAO has updated its key performance indicators for 2012-13 to include a quantifiable target. Using survey results as published in the annual report, the ANAO had met the previous KPIs.

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Outcome 2: To improve the efficiency and effectiveness of the administration of Australian Government programs and entities by undertaking a program of independent performance audits and assurance reviews for the information of Parliament and the Executive.

Outcome 2 StrategyThe key strategy by which the ANAO will seek to achieve this outcome is to contribute, through its audit services, to improvements in the efficiency and administrative effectiveness of the Australian Government Public Sector.

The ANAO also undertakes an assurance review of the Defence Materiel Organisation major projects report.

Following the passing of amendments to the Auditor-General Act 1997: the conduct of performance audit services may now extend to

conducting performance audits of Commonwealth partners (e.g. grant recipients or contractors) that receive money directly or indirectly from the Commonwealth for a particular purpose. Such audits may be conducted only to the extent that they assess the operations of the Commonwealth partner in relation to achieving the Commonwealth purpose. The extension of the performance audit power also extends to state and territory bodies that receive money from the Commonwealth if the audit is conducted at the request of the JCPAA or the responsible Commonwealth Minister

the Auditor-General may audit the appropriateness of, and performance against, the performance indicators of Commonwealth agencies, authorities and companies. The ANAO has taken steps to conduct a pilot audit of performance indicators in 2012-13.

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Table 2.2 provides an overview of the total expenses for outcome 2, by its program.



expenses$'000 $'000

Program 2.1: Performance Audit ServicesDepartmental expenses


Expenses not requiring appropriation in the Budget year 2 565 640







Outcome 2: To improve the efficiency and effectiveness of administration of the Australian Government programs and entities by undertaking a program of independent performance audits and assurance reviews for the information of Parliament and the Executive.


2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense and amortisation expense.

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Program 2.1: Performance Audit Services

Program 2.1 ObjectivesThe objectives of this program are: to undertake performance audits of Australian Government entities and

partners as appropriate

to review all or part of an entity’s operations to assess its efficiency and/or administrative effectiveness

to identify areas where improvements can be made to aspects of public administration

to make specific recommendations to help public sector entities improve their program management

to contribute to improvements in Commonwealth public administration by identifying and promoting better practice

to further professional and public sector development nationally and internationally, and assist audit institutions in developing nations.

Program 2.1 Expenses2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000

Special Appropriations

Auditor-General remuneration and expenses - Auditor-General Act 1997 237 241 245 249 253

Annual departmental expenses:Employee expenses 17,181 17,774 17,842 20,433 20,180 Suppliers 13,117 13,169 13,016 14,820 14,198

Expenses not requiring appropriation inthe Budget year 1 565 640 640 776 776

Total departmental expenses 31,100 31,824 31,743 36,278 35,407 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense,

amortisation expense, makegood expense, and audit fees.

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Program 2.1 Components2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'0002.1.1 - Component 1

Special appropriations:Auditor-General remuneration and expenses - Auditor-General Act 1997 237 241 245 249 253 Annual departmental expenses:

Performance audit services 27,777 28,425 28,348 32,426 31,639 Other audit and related services 463 474 473 541 527 Better Practice Guides 1,543 1,579 1,575 1,801 1,758 Assistance to Parliament 771 789 787 900 878 National and international representations and developing nation support 309 316 315 361 352

Total component expenses 31,100 31,824 31,743 36,278 35,407 Total program expenses 31,100 31,824 31,743 36,278 35,407


2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ard

Deliverables budget year 1 year 2 year 3Number of performance audit reports

to be produced ¹

Review of DMO Major Projects Report 1 1 1 1 1

Number of Better Practice Guides to be produced

4 4 4 4 4

Number of appearances and submissions to Parliamentary committees

20 20 20 20 20

Number of annual audit w ork programs

1 1 1 1 1

Number of engagements that contribute to public sector auditing and support developing nations

20 20 20 20 20

55 52 51 50 50

1 These deliverables are dependent on ANAO capacity, and changes to the public sector environment which influences the scale and scope of performance audits undertaken.

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Program 2.1 Key Performance Indicators 2011-12 2012-13 2013-14 2014-15 2015-16


Percentage of public sector entities acknow ledge the value added by ANAO products and services

90% 90% 90% 90% 90%

Percentage of audited entities agreed w ith the recommendations included in performance audit reports

90% 90% 90% 90% 90%

Percentage of parliamentarians surveyed expressed satisfaction w ith ANAO products and services directed tow ards improving public sector administration

90% 90% 90% 90% 90%

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3.1.1 Movement of administered funds between yearsThe ANAO does not have any movement of administered funds between years.

3.1.2 Special AccountsThe ANAO does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe expenditure reflects the Indigenous component of our Performance Audit program.

Table 3.1.3: Australian Government Indigenous ExpenditureOther Total


Australian National Audit OfficeOutcome 2Performance Audit ServicesDepartmental 2012-13 2,015 - - 2,015 - 2,015 Departmental 2011-12 1,942 - - 1,942 - 1,942 Total outcome 2012-13 2,015 - - 2,015 - 2,015 Total outcome 2011-12 1,942 - - 1,942 - 1,942

Total departmental 2012-13 2,015 - - 2,015 - 2,015 Total departmental 2011-12 1,942 - - 1,942 - 1,942

Total AGIE 2012-13 2,015 - - 2,015 - 2,015 Total AGIE 2011-12 1,942 - - 1,942 - 1,942

Appropriations

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3.2.1 Differences in agency resourcing and financial statementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2012-13. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2012-13.

3.2.2 Analysis of budgeted financial statementsDepartmentalIncome StatementTotal income in 2012-13 is estimated at $77.6m (2011-12: $78.2m). Revenue from government (appropriation funding) has decreased from $74.9m to $74.3m. This reflects reduced funding arising from efficiency dividends.

Other revenue is expected to remain steady at $3.3m. This revenue relates to: AusAID funding of $2.2m to support the Indonesian Board of Audit and

the Papua New Guinea Audit Office

own sourced revenue, of $1.1m, for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act.

Operating expenses for 2012-13 are estimated to total $79.3m (2011-12: $77.1m). Employee expenses will increase in 2012-13 to accommodate salary increases.

Balance SheetThe departmental balance sheet shows the ANAO’s net asset position remaining stable.

At this point, no major financial transactions have been planned for 2012-13 and the total assets and liabilities values are expected to remain stable.

Statement of Cash FlowsThe cash flow is consistent with, and representative of, the transactions reported in the income statement, adjusted for non-cash items and anticipated capital purchases.

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The ANAO’s working cash balance is $1.2m in accordance with the ANAO’s agreement with the Department of Finance and Deregulation.

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Capital Budget StatementThe departmental capital budget statement shows the expected capital works program for the current and forward years. In 2011-12 the ANAO received funding to enhance our professional capability, including IT hardware. Total capital expenditure in 2012-13 is estimated to be $0.9m. In addition, the ANAO forecasts spending a further $3.0m over the forward estimates.

AdministeredSchedule of budgeted income and expenses administered on behalf of governmentEstimated revenues from the provision of audit services to certain Australian Government agencies reflect the estimated recovery of audit costs.

Schedule of budgeted assets and liabilities administered on behalf of governmentThe estimated administered assets and liabilities relate to ongoing audit activity. No non-financial administered assets are held.

Schedule of budgeted administered cash flowsAdministered monies are transferred to the Official Pubic Account on an ongoing basis.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 42,079 43,542 43,618 44,917 44,419 Suppliers 33,343 34,088 34,504 33,538 35,010 Depreciation and amortisation 1,686 1,686 1,686 1,686 1,686 Total expenses 77,108 79,316 79,808 80,141 81,115 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 1,100 1,100 1,100 1,100 1,500 Rental income 200 200 200 177 177 Other 2,024 2,024 2,024 2,024 2,024 Total own-source revenue 3,324 3,324 3,324 3,301 3,701 Total own-source income 3,324 3,324 3,324 3,301 3,701 Net cost of (contribution by)

services 73,784 75,992 76,484 76,840 77,414 Revenue f rom Government 74,891 74,306 74,798 75,154 75,728 * * * *Surplus (Deficit) attributable to

the Australian Government 1,107 (1,686) (1,686) (1,686) (1,686) Total comprehensive income (loss)

attributable to the Australian Government 1,107 (1,686) (1,686) (1,686) (1,686)

Note: Impact of Net Cash Apppropriation Arrangements2011-12 2012-13 2013-14 2014-15 2015-16


(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. 2,793 - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 1,686 1,686 1,686 1,686 1,686

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income 1,107 (1,686) (1,686) (1,686) (1,686)

1 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)Estimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and cash equivalents 1,187 1,187 1,187 1,187 1,187 Trade and other receivables 21,901 21,781 21,217 21,217 21,217 Other 218 218 218 218 218

Total financial assets 23,306 23,186 22,622 22,622 22,622 Non-financial assets

Land and buildings 5,254 4,469 3,684 3,684 3,684 Property, plant and equipment 1,142 1,336 1,537 1,319 450 Intangibles 2,563 2,411 2,211 1,775 1,999 Other 1,010 1,010 1,010 1,010 1,010

Total non-financial assets 9,969 9,226 8,442 7,788 7,143 Total assets 33,275 32,412 31,064 30,410 29,765 LIABILITIESPayables

Suppliers 570 570 570 570 570 Other 2,955 2,602 2,038 2,038 2,038

Total payables 3,525 3,172 2,608 2,608 2,608 Provisions

Employee provisions 10,245 10,523 10,523 10,523 10,523 Total provisions 10,245 10,523 10,523 10,523 10,523 Total liabilities 13,770 13,695 13,131 13,131 13,131 Net assets 19,505 18,717 17,933 17,279 16,634 EQUITY*

Contributed equity 7,775 8,673 9,575 10,607 11,648 Reserves 490 490 490 490 490 Retained surplus

(accumulated deficit) 11,240 9,554 7,868 6,182 4,496 Total Equity 19,505 18,717 17,933 17,279 16,634 * 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

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reserve capital$'000 $'000 $'000 $'000


previous period 11,240 490 7,775 19,505 Adjusted opening balance 11,240 490 7,775 19,505

Surplus (deficit) for the period (1,686) - - (1,686) Total comprehensive income

recognised directly in equity (1,686) - - (1,686) Transactions w ith owners

Contributions by ownersAppropriation (departmental)capital budget - - 898 898

Sub-total transactions with owners - - 898 898 Estimated closing balance

as at 30 June 2013 9,554 490 8,673 18,717 Closing balance attributable to the

Australian Government 9,554 490 8,673 18,717 Prepared on Australian Accounting Standards basis.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Goods and services 3,324 3,324 3,324 3,301 3,701 Appropriations 75,659 74,426 75,362 75,154 75,728

Total cash received 78,983 77,750 78,686 78,455 79,429 Cash used

Employees 42,201 43,264 43,618 44,917 44,419 Suppliers 35,784 34,088 34,504 33,538 35,010 Other 197 398 564 - -


operating activities 801 - - - - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 1,974 898 902 1,032 1,041

Total cash used 1,974 898 902 1,032 1,041 Net cash from (used by)

investing activities (1,974) (898) (902) (1,032) (1,041) FINANCING ACTIVITIESCash received

Contributed equity 1,173 898 902 1,032 1,041 Total cash received 1,173 898 902 1,032 1,041 Net cash from (used by)

financing activities 1,173 898 902 1,032 1,041 Net increase (decrease)

in cash held - - - - - Cash and cash equivalents at the

beginning of the reporting period 1,187 1,187 1,187 1,187 1,187 Cash and cash equivalents at the

end of the reporting period 1,187 1,187 1,187 1,187 1,187 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental Capital Budget StatementEstimated Budget Forw ard Forw ard Forw ard



Capital budget - Bill 1 (DCB) 1,173 898 902 1,032 1,041 Equity Injections - Bill 2 398 - - - -

Total capital appropriations 1,571 898 902 1,032 1,041 Total new capital appropriations

Provided for:Purchase of non-financial assets 1,571 898 902 1,032 1,041

Total Items 1,571 898 902 1,032 1,041 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 1,173 898 902 1,032 1,041 Funded by capital appropriations2 398 - - - -

TOTAL 1,571 898 902 1,032 1,041 RECONCILIATION OF CASH


Total purchases 1,571 898 902 1,032 1,041 Total cash used to

acquire assets 1,571 898 902 1,032 1,041 1 Includes purchases from current and previous year's department capital budgets.2 Includes the following sources of funding: annual and prior year appropriations, donations and

contributions, gifts, internally developed assets, s31 relevant agency receipts, and proceeds from the sale of assets.

DCB = Departmental Capital BudgetPrepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of Asset Movements (2012-13)

Buildings Other property, Intangibles Totalplant and

equipment$'000 $'000 $'000 $'000

As at 1 July 2012Gross book value 6,191 1,442 5,673 13,306 Accumulated depreciation/amortisation

and impairment 937 300 3,110 4,347 Opening net book balance 5,254 1,142 2,563 8,959 CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 - 278 620 898 Total additions - 278 620 898 Other movementsDepreciation/amortisation expense 785 84 817 1,686 Other movements - - 45 45 As at 30 June 2013Gross book value 5,254 1,420 3,228 9,902 Accumulated depreciation/amortisation

and impairment 785 84 817 1,686 Closing net book balance 4,469 1,336 2,411 8,216

1 ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2012-13 for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses.


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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENT

Total expenses administeredon behalf of Government - - - - -

LESS:OWN-SOURCE INCOMENon-taxation revenue

Fees and fines 10,982 12,088 12,810 12,900 12,900 Total non-taxation revenue 10,982 12,088 12,810 12,900 12,900 Total own-source revenues

administered on behalf of Government 10,982 12,088 12,810 12,900 12,900

Total own-sourced incomeadministered on behalf ofGovernment 10,982 12,088 12,810 12,900 12,900

Net Cost of (contribution by)services

Surplus (Deficit) 10,982 12,088 12,810 12,900 12,900 Total comprehensive income (loss) 10,982 12,088 12,810 12,900 12,900


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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Financial assetsReceivables 3,260 3,260 3,260 3,260 3,260 Other 1,011 1,011 1,011 1,011 1,011

Total financial assets 4,271 4,271 4,271 4,271 4,271 Total assets administered



Suppliers 268 268 268 268 268 Total payables 268 268 268 268 268 Total liabilities administered

on behalf of Government 268 268 268 268 268 Prepared on Australian Accounting Standards basis.

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Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 12,003 12,088 12,810 12,900 12,900


Other 12,003 12,088 12,810 12,900 12,900 Total cash used 12,003 12,088 12,810 12,900 12,900 Net cash from (used by)

operating activities - - - - - Prepared on Australian Accounting Standards basis

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Australian Public Service Commission


89

AUSTRALIAN PUBLIC SERVICE COMMISSION

Section 1: Agency overview and resources............................................................931.1 Strategic Direction Statement.................................................................................93

1.2 Agency Resource Statement..................................................................................94

1.3 Budget Measures...................................................................................................95

Section 2: Outcomes and planned performance.....................................................962.1 Outcomes and performance information................................................................96

Section 3: Explanatory tables and budgeted financial statements......................1143.1 Explanatory tables................................................................................................114

3.2 Budgeted Financial Statements...........................................................................115

91

APSC Budget Statements

AUSTRALIAN PUBLIC SERVICE COMMISSION



The planned outcome of the Australian Public Service Commission (APSC) is to increase awareness and adoption of best practice public administration by the Australian Public Service (APS) through leadership, promotion, advice and professional development, drawing on research and evaluation. The APSC takes a central, leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies. The APSC also undertakes statutory functions under the Public Service Act 1999 (the Act), including functions to strengthen the Australian Public Service’s integrity.

In 2012–13 the APSC will continue to focus on its five strategic priorities. These priorities reflect our statutory responsibilities, but they are also consistent with the whole-of-government reform and delivery agenda and form the basis for the program objectives and outputs detailed in the following sections. Our strategic objectives are: to build a unified, citizen-centric APS by leading its organisational and

human capital strategies

to lead APS agencies’ adoption of best human capital practices and assure agencies’ organisational capability

to develop outstanding leaders and shape a cohesive leadership network

to instil and enliven APS ethics and values to inspire excellence

to invest in and grow the APSC’s capability to deliver its expanded role.

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Table 1.1: APSC Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 21,280 - 21,280 21,760

Departmental appropriation3 - 23,686 23,686 26,014 s31 Relevant agency receipts4 - 27,243 27,243 27,949 Total 21,280 50,929 72,209 75,723

Total ordinary annual services A 21,280 50,929 72,209 75,723

Other servicesTotal - - - -

Total other services B - - - - Total available annual


by criteria/entitlementRemuneration Tribunal Act 1973 - s7(13) - 30,864 30,864 26,652 Remuneration and Allowances Act 1990 - 28,987 28,987 23,253

Total special appropriations C - 59,851 59,851 49,905 Total appropriations excluding




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1.3 BUDGET MEASURES

Budget measures relating to the APSC are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: APSC 2012-13 Budget measuresProgram 2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000Expense measures Australian Public Service Employment and Capability Strategy for Aboriginal and Torres Strait Islander Employees - continuation 1.1

Departmental expenses - 595 595 595 - Total - 595 595 595 - Total expense measures

Departmental - 595 595 595 - Total - 595 595 595 -

Prepared on a Government Finance Statistics (fiscal) basis.

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The APSC’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the APSC in achieving government outcomes.

Outcome 1: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

Outcome 1 StrategyThe APSC takes a central, leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies. The APSC also undertakes statutory functions under the Public Service Act 1999 (the Act), including functions to strengthen the Australian Public Service’s integrity.

The key elements in the APSC’s leadership across the APS are: supporting people management reforms, including through building an

APS-wide human capital framework that provides a strategic and coordinated approach to the development of APS leaders and its people

ensuring greater consistency for a united APS, including through promotion of the APS values and its ethical framework and coordination of workplace relations for Australian Government employees

assuring agency capability and effectiveness, including through processes for improved workforce planning, agency capability reviews and input to the Human Capital Priority Plan and the Leadership and Development Strategy.

The APSC is responsible for Australian Government policies for enterprise bargaining in Australian Government employment, classification structures, pay and employment conditions for Australian Government employees, work level standards and workplace relations advice. Through strengthened bargaining arrangements, the APSC will encourage agencies to develop a more consistent approach to common terms and conditions of employment

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for APS employees when negotiating enterprise agreements, to support the aim of moving towards one APS.

The APSC will continue to report publicly on the state of the APS through the 2012-13 State of the Service report which will assess APS workforce trends and capability. One of the key information sources for the report is an employee survey that will be conducted as a census of all APS employees during 2012, rather than as a random sample as has been done in the past. This will provide the APSC with improved agency benchmarking capability and the opportunity for more probing analysis.

In 2011, Portfolio Secretaries agreed to invest in the APSC to deliver a range of services, including leadership and skills development, talent management, and a review of the APS classification structure including work level standards to inform the government’s policy for the future. The APSC will continue to support agencies through: effective communication strategies that minimise the burden on

agencies in adopting new guidelines and frameworks the provision of advice on agency-specific processes and capability

development.

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Outcome Expense StatementTable 2.1 provides an overview of the total expenses for this outcome, by program.



expenses$'000 $'000

Program 1.1: Australian Public Service CommissionDepartmental expenses

Departmental appropriation 1 53,779 50,556 Expenses not requiring appropriation in the Budget year 2 1,408 777

Total for Program 1.1 55,187 51,333 Program 1.2: Parliamentarians' and Judicial Office Holders' Remuneration and EntitlementsAdministered expenses

Special appropriations 49,905 59,851

Total for Program 1.2 49,905 59,851 Outcome 1 Totals by appropriation typeAdministered Expenses

Special appropriations 49,905 59,851 Departmental expenses

Departmental appropriation 1 53,779 50,556 Expenses not requiring appropriation in the Budget year 2 1,408 777



Outcome 1: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, draw ing on research and evaluation.


2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, and operating lease rental expense.


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Program 1.1: Australian Public Service Commission

Program 1.1 is made up of three components as outlined on the pages following. Below is a table demonstrating total expenses for program 1.1.

Program 1.1 ExpensesExpenses are expected to reduce in 2012-13 due to: the APS Indigenous Employment Strategy Budget measure terminating

in 2011-12

reduction in the APS Reform Budget measure

expected reductions in fee for service income

lower funding arising from the one-off 2.5 per cent efficiency dividend.

Expenses are expected to reduce in 2013-14 due to:

cessation of fee for service activities provided to agencies associated with establishing the 2014 workplace relations framework and APS Reform activities.

Expenses are expected to reduce in 2014-15 and 2015-16 as planned activities for the agency capability reviews are completed.

Expenses are also expected to reduce in 2015-16 due to the termination in 2014-15 of the Australian Public Service Employment and Capability Strategy for Aboriginal and / or Torres Strait Islander Employees Budget measure.


$'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Departmental appropriation1 53,779 50,556 47,884 45,814 44,242 Expenses not requiring appropriation in

the Budget year2 1,408 777 774 1,162 1,162 Total departmental expenses 55,187 51,333 48,658 46,976 45,404


2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, and operating lease rental expense.

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Program Component 1.1.1: APS People and Organisational Performance

Program Component 1.1.1 ObjectivesThe APS undertakes a broad range of activities related to policy, regulation, program implementation and program delivery.To improve the effectiveness of the APS, the APSC will develop a human capital framework. Capability reviews of APS departments and selected agencies will be undertaken.The objectives are: to enhance employment frameworks within the APS that support

effective deployment and management of human capital

to advise government on amendments to the public service legislation and provide high quality policy advice, and employment services, on matters covered by the Public Service Act 1999

to manage and provide quality policy advice on the Public Service Commissioner’s statutory responsibilities for SES employment and recruitment of agency heads and statutory office holders

to work with agencies to embed APS Values (if legislated) in the APS that are effective in driving performance and cultural change, and promote public service ethics and integrity

to ensure a more systematic approach to APS-wide human capital and workforce planning through development of a human capital framework and workforce planning framework

to streamline and improve APS workforce recruitment, induction, mobility and diversity strategies while upholding the merit principle and improve the employment brand of the APS

to undertake agency capability reviews to assist agencies to improve institutional capabilities and strengthen accountability of agency performance

to support the review, inquiry and reporting functions of the Public Service Commissioner and the Merit Protection Commissioner

through reviews conducted by the Merit Protection Commissioner, contribute to ensuring consistent standards of decisions-making and people management practices across the APS

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to strengthen the performance management framework for the APS, providing evidence-based analysis of the current state of performance management across the APS to inform the debate

to ensure that APS agencies have access to through leadership and guidance on strategies to enhance Agency specific capability and leadership development through networks, forums and client engagement activities

to develop public sector capability and capacity in partnership with developing countries on behalf of the Australian Government

to deliver strategies under the Indigenous Employment Strategy, including undertaking research and analysis to inform initiatives to improve the retention of Indigenous staff in the APS.

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Program Component 1.1.1 ExpensesExpenses are expected to decline in 2013-14 due to: termination in the 2012-13 of the APS Reform Budget Measure

lower fee for service income for Indigenous Employment.

Expenses are expected to reduce in 2014-15 and 2015-16 due to:

completion of planned activities for the agency capability reviews.

Expenses are also expected to reduce in 2015-16 due to the termination in 2014-15 of the Australian Public Service Employment and Capability Strategy for Aboriginal and / or Torres Strait Islander Employees Budget measure.


$'000 $'000 $'000 $'000 $'0001.1.1 - APS People and Organisational Performance

Annual departmental expenses:Departmental appropriation1 19,373 19,452 18,367 16,077 14,223

Expenses not requiring Appropriation inthe Budget year2 529 267 266 395 395

Total component expenses 19,902 19,719 18,633 16,472 14,618 1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and

‘Revenue from independent sources (s31)’.2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense,

amortisation expense, makegood expense, audit fees, and operating lease rental expense.

102


Program Component 1.1.1 DeliverablesThe APSC’s key deliverables are: tools for embedding the APS Values

provision of an ethics advisory service

human capital, workforce planning and capability frameworks and benchmarking processes reflected in the APS Human Capital Priority Plan and the leadership development strategy for the APS

best practice guidelines and strategies for recruitment, induction, mobility, diversity and improved recruitment processes through maximising the use of technology, including development of a new APSjobs site to improve search functionality, candidate experience and enhance the APS employment brand

introduction of a new performance management framework, development of case studies and strategies to support high performance and development of new guidelines for the management of underperformance

international development activities and leadership programs that build public sector capability and capacity on behalf of the Australian Government

policy advice on employment issues and exercise of statutory responsibilities in relation to SES employees, agency heads, statutory office holders and the integrity framework

agency capability reviews, reports and capability improvement plans

accurate, quality and timely review and employment services

data analysis on APS employment delivered through the State of the Service Report and other reports, including international and inter-jurisdictional comparisons where appropriate, to assist in its advice to government and the APS

strategies to improve and increase Indigenous representation across the APS through increased employment and targeted development of Indigenous employees in the APS, with the desired result of a positive trend in APS Indigenous employee satisfaction as reported in the State of the Service Report.

103


Program Component 1.1.1 Deliverables (continued)2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ard

Deliverables budget year 1 year 2 year 3Number of review s f inalised on behalf of the Merit Protection Commissioner

235 235 235 235 235

Percentage of review s conducted on behalf of the Merit Protection Commissioner completed w ithin published timeframes

70% 70% 70% 70% 70%

Number of responses to w histleblow ing reports made to the Public Service Commissioner or the Merit Protection Commissioner

20 20 20 20 20

Percentage of w histleblow ing reports responded to w ithin 6 w eeks, w ith any further investigations conducted promptly

70% 70% 70% 70% 70%

Number of State of the Service Report and associated publications 2 2 2 2 2

Percentage of State of the Service Report tabled in accordance w ith tabling requirements

100% 100% 100% 100% 100%

Number of fee-for-service employment related services 500 500 500 500 500

Number of Secretariat service provided to APS 200 and the Public Service Commissioner’s Conference

4 8 8 8 8

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Program Component 1.1.1 Key Performance Indicators Degree of satisfaction of Minister and agency heads, as expressed

through feedback about the quality and timeliness of services and advice provided by the APSC.

Development of programs and strategies to assist APS agencies with recruitment, training and retention to reach at least 2.7 per cent of Indigenous representation across the APS workforce by 2015.

2011-12 2012-13 2013-14 2014-15 2015-16Key Performance Revised Budget Forw ard Forw ard Forw ard

Indicators budget target year 1 year 2 year 3

Percentage of high level of use and satisfaction w ith the State of the Service Report and other research and evaluation reports by the SES, agencies and other clients

75% 75% 75% 75% 75%

Program Component 1.1.2: Investing in APS Development and Capability

Program Component 1.1.2 ObjectivesAPS workforce capability will be critical to improving APS performance in the future. Its leaders shape the culture and values of the APS. Strong and effective leadership skills supported by investment in learning and development are essential components in building a high-performing, innovative and agile APS.

The objectives are: To reinvigorate strategic leadership capability by:

– identifying high quality, strategically aligned leadership programs which produce the skills agencies and the APS need, deliver value for money and minimise duplication of leadership development activities

– investing in the talent management of top performers in the APS.

to support, guide and encourage APS agencies to invest as required in the capability development of their people, to raise overall APS capability

to provide to APS agencies access to through leadership and guidance on strategies to enhance leadership development and talent management

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to support agencies via access to high quality providers and a suite of core learning and development programs which meet APS needs

to support leadership, learning and development opportunities that build knowledge, capabilities, skills and behaviours through international programs.

Program Component 1.1.2 ExpensesExpenses are expected to reduce in 2012-13 due to an expected reduction in demand for fee for service learning and development activities.


$'000 $'000 $'000 $'000 $'0001.1.2 - Investing in APS Development and Capability






106


Program Component 1.1.2 DeliverablesThe APSC’s key deliverables are: a leadership development strategy based on current and emerging

priorities oversighted by the Strategic Centre for APS Leadership, Learning and Development Advisory Board

the identification of aligned contemporary leadership programs and (where of value) the central procurement of programs

quality assessments of professional development programs and providers and improved evaluation of program outcomes

thought leadership and support and advice for agencies and APS leaders, in identifying and nurturing top talent across the APS and providing opportunities to develop high-performing individuals

the delivery of leadership development programs (including those used as part of the approach to talent management) as identified by the Strategic Centre for APS Leadership, Learning and Development and the Secretaries Board

leadership, learning and development programs that build knowledge, capabilities, skills and behaviours, including partnerships with the states and territories

support for leadership excellence through international programs and work with the states and territories on public sector educational training needs.

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Program Component 1.1.2 Deliverables (continued)2011-12 2012-13 2013-14 2014-15 2015-16Revised Budget Forw ard Forw ard Forw ard

Deliverables budget year 1 year 2 year 3Number of leadership programs delivered 78 84 84 84 84

Number of agencies using the leadership learning development panel to deliver training

61 61 61 61 61

Number of APS 1-6 and Executive level core skills programs delivered 270 240 240 240 240

Percentage of agencies engaged through at least one scheduled event, activity or netw ork focused on leadership

75% 75% 75% 75% 75%

Percentage of new SES attending orientation program 80% 80% 80% 80% 80%

Percentage of SES and Executive level programs w ere rated 5 or 6 on a 6-point scale for relevance and usefulness

85% 85% 85% 85% 85%

Percentage of panel services that w ere rated 5 or 6 on a 6-point scale for how w ell the program w as delivered and coordinated

85% 85% 85% 85% 85%

Number of APS agencies using quality assured providers 30 30 30 30 30

Manage SES high potential program for target number of participants (to be determined by SCLLD Advisory Board)1

As agreed As agreed As agreed As agreed As agreed

1 SCLLD refers to the Strategic Centre for APS Leadership, Learning and Development.

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Program Component 1.1.2 Key Performance Indicators APS has sufficient leadership capability to meet current and future

business requirements - to become more citizen-centric, to be able to solve complex problems, to operate as one-APS, to anticipate challenges and implement effectively.

Improvements in leadership development programs evaluation outcomes, including the degree to which programs improve leadership effectiveness.

APS agencies have access to thought leadership and guidance on strategies to enhance agency specific leadership development.

APS agencies have access to high quality, strategically aligned leadership programs which deliver the skills needed by agencies and the APS.

The learning and development programs lead to increased choice, opportunity and better work performance.

Increased acquisition of skills and knowledge leads to better service delivery within the APS.

Degree of satisfaction of the Secretaries Board with the progress in implementing the Blueprint recommendations where APSC is the lead agency.

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Program Component 1.1.2 Key Performance Indicators (continued)2011-12 2012-13 2013-14 2014-15 2015-16


Percentage of responding surveyed participants consider that APSC programs have equipped them w ith the know ledge and skills they need in order to perform their roles more effectively

85% 85% 85% 85% 85%

Percentage of responding surveyed participants consider that APSC program learning objectives w ere met effectively

85% 85% 85% 85% 85%

Percentage of responding surveyed participants agree that attending APSC programs and/or events assisted in building their aw areness of issues, developments and priorities to enable them to w ork more effectively

85% 85% 85% 85% 85%

Percentage of responding surveyed participants agree that attending APSC leadership development activities increased their leadership skill, capability and know ledge

85% 85% 85% 85% 85%

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Program Component 1.1.3: Australian Government Employment Workplace Relations

Program Component 1.1.3 ObjectivesThe objectives are: to provide advice and support in relation to workplace relations within

Australian Government employment

to strengthen and streamline the employment bargaining framework for the APS to support one APS

to enhance and maintain employment frameworks, including classification and work level standards, to support cost-effective whole-of-APS delivery to government and stakeholders

to assist the Remuneration Tribunal and the Defence Force Remuneration Tribunal to meet their respective statutory obligations through the provision of high-quality advisory and administrative support.

Program Component 1.1.3 ExpensesExpenses are expected to reduce in 2012-13 due to reductions in APS Reform funding. Expenses are expected to reduce in 2013-14 due to cessation of contributions from agencies for establishing the 2014 workplace relations framework.


$'000 $'000 $'000 $'000 $'0001.1.3 - Australian Government






111


Program Component 1.1.3 DeliverablesThe APSC’s key deliverables are: policy advice to the Minister on workplace arrangements in Australian

Government employment

advice and support to Australian Government agencies to ensure compliance with Australian government policy and relevant legislative requirements

administration of the enterprise bargaining arrangements for Australian Government employment

progress of a review of APS classification structures and work-level standards to ensure that these arrangements support a united APS and meet the needs of employers and employees

implementation of government objectives relating to the size and capability of the SES

provision of secretariat support to the Defence Force Remuneration Tribunal

provision of high-quality advisory and administrative support to the Remuneration Tribunal.

Program Component 1.1.3 Key Performance Indicators Advice to the Minister on Australian Government employment

workplace relations is timely and of high quality.

Agencies generally consider the guidance and advice provided is accurate and timely.

Agencies consider that the review of the classification structure and APS-wide work level standards leads to outcomes that support their business and one APS.

Level of satisfaction of the President of the Defence Force Remuneration Tribunal with the quality and timeliness of the services provided by the Secretariat.

Level of satisfaction of the President of the Remuneration Tribunal with the quality and timeliness of the services provided by the Tribunal

112


Secretariat.

SES numbers reflect government policy objectives.

113


Program Component 1.1.3 Key Performance Indicators 2011-12 2012-13 2013-14 2014-15 2015-16


Percentage of agency enterprise agreements are assessed against the bargaining framew ork w ithin 10 w orking days

100% 100% 100% 100% 100%

Percentage of all variations to remuneration and entitlements are processed in a timely manner w ith an accuracy of at least 99 per cent w ithin published timeframes

99% 99% 99% 99% 99%

Level of satisfaction of the President of the Defence Force Remuneration Tribunal w ith the quality and timeliness of the services provided by the Secretariat (Very good or above)

very good or above

very good or above

very good or above

very good or above

very good or above

Level of satisfaction of the President of the Remuneration Tribunal w ith the quality and timeliness of the services provided by the Tribunal Secretariat (Very good or above)

very good or above

very good or above

very good or above

very good or above

very good or above

Program 1.2: Parliamentarians’ and Judicial Office Holders Remuneration and Entitlements.

Program 1.2 ObjectiveThe objective of this program is to facilitate the payment of remuneration, allowances and entitlements to Parliamentarians’ and Judicial Office Holders.

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Program 1.2 ExpensesThe Department of the Senate, the Department of the House of Representatives and the Attorney-General’s Department make all payments for this program.These payments are funded by special appropriations and expenses move in line with the level of remuneration, allowances and entitlements for Parliamentarians and Judicial Office Holders. A review of the remuneration of Parliamentarians increased the base salary for Parliamentarians’, which applies from March 2012. This results in a significant increase in expense for 2012-13 and the forward budget years.


$'000 $'000 $'000 $'000 $'000Special Appropriations:

Remuneration Tribunal Act 1973 - s7(13) 26,652 30,864 31,509 32,172 32,816 Remuneration and Allowances Act 1990 23,253 28,987 29,596 30,218 30,822

Total administered expenses 49,905 59,851 61,105 62,390 63,638

Program 1.2 DeliverablesThe key deliverable is the payment of remuneration, allowances and entitlements to Parliamentarians and Judicial Office Holders.

Data is not provided for deliverables because the administered items are paid by the Department of the Senate, the Department of the House of Representatives and the Attorney-General’s Department.

Program 1.2 Key Performance IndicatorsAll variations to remuneration and entitlements are processed in a timely manner with an accuracy of at least 99 per cent.

2011-12 2012-13 2013-14 2014-15 2015-16Key Performance Revised Budget Forw ard Forw ard Forw ard

Indicators budget target year 1 year 2 year 3

Percentage of all variations to remuneration and entitlements are processed in a timely manner w ith an accuracy of at least 99 per cent.

99% 99% 99% 99% 99%

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3.1.1 Movement of administered funds between yearsAPSC has no movement of administered funds between years.

3.1.2 Special AccountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation.

The purpose of the Other Trust monies special account is for the expenditure of monies temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth. This account is used to receive Comcare employee reimbursements for incidents that occurred up until 30 June 2006. These monies are temporarily held in trust for other persons and are therefore not included in the total resources available for the agency. This account is expected to be closed during 2011-12.

3.1.3 Australian Government Indigenous ExpenditureTable 3.1.3: Australian Government Indigenous Expenditure

Other Total ProgramBill Bill Special Total

No. 1 No. 2 approp appropAustralian Public Service $'000 $'000 $'000 $'000 $'000 $'000Outcome 1Departmental 2012-13 1,206 - - 1,206 1,303 2,509 1.1Departmental 2011-12 2,197 - - 2,197 1,082 3,279 1.1Total outcome 2012-13 1,206 - - 1,206 1,303 2,509 Total outcome 2011-12 2,197 - - 2,197 1,082 3,279

Total departmental 2012-13 1,206 - - 1,206 1,303 2,509 Total departmental 2011-12 2,197 - - 2,197 1,082 3,279

Total AGIE 2012-13 1,206 - - 1,206 1,303 2,509 Total AGIE 2011-12 2,197 - - 2,197 1,082 3,279

Appropriations

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3.2.1 Differences in agency resourcing and financial statementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2012-13 including both departmental and administered funding. This includes appropriation that is yet to be drawn down to cover departmental payables and provisions on the balance sheet. The departmental comprehensive income statement (Table 3.2.1) shows only the departmental operating appropriation provided in each year.

3.2.2 Analysis of budgeted financial statements

Departmental

Income StatementIn 2011-12, the APSC will incur an operating loss of $0.6m, adjusted for depreciation and amortisation expense. This loss is due to the non-cash impact of straight-lining minimum lease payments for office rent ($0.2m) and an increase in employee leave provisions due to a significant change in the long-term bond rate ($0.4m).

In 2012-13, the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense.

Appropriation revenue will decrease by $2.5m from $25.8m in 2011-12 to $23.3m in 2012-13 due to the termination in 2011-12 of the APS Indigenous Employment Strategy Budget measure, a reduction in the funding for the APS Reform Budget measure and the impact of the one-off 2.5 per cent efficiency dividend.

Appropriations will reduce in 2013-14 due to the termination of APS reform funding and will further reduce in 2015-16 as funding terminates for the Australian Public Service Employment and Capability Strategy for Aboriginal and/or Torres Strait Islander Employees Budget measure for which appropriation funding commenced in 2012-13.

Goods and services income is expected to decrease by $0.7m from $27.9m in 2011-12 to $27.2m in 2012-13, as there is expected to be a reduced demand for fee for service learning and development activities. Income is expected to reduce in 2013-14 as a result of the finalisation of the 2014 workplace relations framework which was funded by contributions from agencies to establish the framework. Income will further reduce in 2014-15 and 2015-16 as planned activities for the agency capability reviews are completed.

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Balance SheetCash balances are maintained at a working capital level of $0.5m. Cash holdings above this level are transferred as a receivable held in the Official Public Account.

Receivables vary in line with the APSC’s capital investment cycle for FMA s. 31 funded fee for service activities. Receivables will remain constant in 2012-13 and decrease in future years to enable future asset reinvestment.

The main payables and provisions of the APSC are expected to remain at around current levels. The lease incentive liability will reduce over the budget year and forward years as the upfront incentives received from lessors for office leases are allocated as rebates to lease expense over the term of those leases.

Net equity will reduce over the budget and forward years as the level of departmental capital budget funding is lower than the loss incurred due to net cash appropriation arrangements.

Administered Financial StatementsThe administered transactions are for payments of Parliamentarians’ and Judicial Office Holders’ remuneration and entitlements. These payments are funded by special appropriations and are disclosed in the administered schedule of income and expenses and schedule of cash flows. There are no administered liabilities or assets as all remuneration and entitlements are paid in the month in which they are incurred.

A review of the remuneration of Parliamentarians’ increased the base salary for Parliamentarians from March 2012. This is expected to result in a $10.0m increase in expense from $49.9m in 2011-12 to $59.9m in 2012-13.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 31,060 29,840 28,347 28,733 27,122 Suppliers 22,659 20,154 19,068 16,785 16,827 Depreciation and amortisation 1,446 1,316 1,221 1,436 1,436 Finance costs 22 23 22 22 19 Total expenses 55,187 51,333 48,658 46,976 45,404 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 27,949 27,243 25,631 23,400 22,214 Total own-source revenue 27,949 27,243 25,631 23,400 22,214 GainsOther 40 40 40 40 40 Total gains 40 40 40 40 40 Total own-source income 27,989 27,283 25,671 23,440 22,254 Net cost of (contribution by)


the Australian Government (1,368) (737) (734) (1,122) (1,122) Total comprehensive income (loss) (1,368) (737) (734) (1,122) (1,122) Total comprehensive income (loss)

attributable to the Australian Government (1,368) (737) (734) (1,122) (1,122)



(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. (591) - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 777 737 734 1,122 1,122

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (1,368) (737) (734) (1,122) (1,122)

3 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 450 450 450 450 450 Trade and other receivables 24,643 24,705 24,334 23,942 23,242


Land and buildings 3,034 2,507 2,388 2,083 1,768 Property, plant and equipment 1,608 1,821 2,143 2,045 1,966 Intangibles 901 735 633 510 382 Inventories 88 88 88 88 88 Prepayments 506 506 506 506 506


Suppliers 6,789 6,878 6,885 6,803 6,656 Unearned Revenue 7,153 7,153 7,153 7,153 7,153

Total payables 13,942 14,031 14,038 13,956 13,809 Interest bearing liabilities

Lease incentives 1,266 1,100 934 768 602 Total interest bearing l iabi lities 1,266 1,100 934 768 602 Provisions

Employee provisions 6,560 6,560 6,560 6,560 6,560 Provision for restoration obligations 454 477 428 450 229

Total provisions 7,014 7,037 6,988 7,010 6,789 Total liabilities 22,222 22,168 21,960 21,734 21,200 Net assets 9,008 8,644 8,582 7,890 7,202 EQUITY*

Contributed equity (673) (300) 372 802 1,236 Reserves 1,566 1,566 1,566 1,566 1,566 Retained surplus

(accumulated deficit) 8,115 7,378 6,644 5,522 4,400 Total Equity 9,008 8,644 8,582 7,890 7,202


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reserve capital$'000 $'000 $'000 $'000


previous period 8,115 1,566 (673) 9,008 Comprehensive income

Surplus (def icit) for the period (737) - - (737) Total comprehensive income

recognised directly in equity (737) - - (737) Transactions w ith owners



as at 30 June 2013 7,378 1,566 (300) 8,644 Prepared on Australian Accounting Standards basis.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Goods and services 30,744 29,967 28,194 25,740 24,435 Appropriations 25,830 23,313 22,253 22,414 22,028 Other - - 371 392 700


Employees 30,639 29,840 28,347 28,733 27,122 Suppliers 24,991 22,292 21,235 18,765 18,900 Other 768 685 515 568 421


operating activities 176 463 721 480 720 INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 384 616 1,177 765 769

Purchase of intangibles 791 220 145 145 145 Other 26 - 71 - 240

Total cash used 1,201 836 1,393 910 1,154 Net cash from (used by)

investing activities (1,201) (836) (1,393) (910) (1,154) FINANCING ACTIVITIESCash received

Contributed equity 184 373 672 430 434 Total cash received 184 373 672 430 434 Net cash from (used by)

financing activities 184 373 672 430 434 Net increase (decrease)

in cash held (841) - - - - Cash and cash equivalents at the

beginning of the reporting period 1,291 450 450 450 450 Cash and cash equivalents at the

end of the reporting period 450 450 450 450 450 Prepared on Australian Accounting Standards basis.

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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 184 373 672 430 434 Total capital appropriations 184 373 672 430 434 Total new capital appropriations Provided for:

Purchase of non-financial assets 158 373 601 430 434 Other Items 26 - 71 - -

Total Items 184 373 672 430 434 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 184 373 672 430 434 Funded internally from

departmental resources2 1,017 463 721 480 720 TOTAL 1,201 836 1,393 910 1,154 RECONCILIATION OF CASH


Total purchases 1,175 836 1,322 910 914 plus restoration costs 26 - 71 - 240 Total cash used to

acquire assets 1,201 836 1,393 910 1,154 1 Includes purchases from current and previous year's department capital budgets.4 Includes the following sources of funding: annual and prior year appropriations, donations and



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Table 3.2.6: Statement of Asset Movements (2012-13)Asset Category


equipment$'000 $'000 $'000 $'000


and impairment 621 1,262 2,196 4,079 Opening net book balance 3,034 1,608 901 5,543 CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 - 616 220 836 Total additions - 616 220 836 Other movementsDepreciation/amortisation expense 527 403 386 1,316 As at 30 June 2013Gross book value 3,655 3,486 3,317 10,458 Accumulated depreciation/amortisation

and impairment 1,148 1,665 2,582 5,395 Closing net book balance 2,507 1,821 735 5,063

1 ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2012-13 for depreciation / amortisation expenses, DCBs or other operational expenses.


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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTEmployee benefits 49,905 59,851 61,105 62,390 63,638


Net Cost of (contribution by)services (49,905) (59,851) (61,105) (62,390) (63,638)

Surplus (Deficit) (49,905) (59,851) (61,105) (62,390) (63,638) Total comprehensive income (loss) (49,905) (59,851) (61,105) (62,390) (63,638)


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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (for the period ended 30 June)The APSC has no assets or liabilities administered on behalf of Government.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash used

Employees 49,905 59,851 61,105 62,390 63,638 Total cash used 49,905 59,851 61,105 62,390 63,638 Net cash from (used by)

operating activities (49,905) (59,851) (61,105) (62,390) (63,638) Net increase (decrease) in

cash held (49,905) (59,851) (61,105) (62,390) (63,638) Cash and cash equivalents at

beginning of reporting period - - - - - Cash from Off icial Public Account for:

- Appropriations 49,905 59,851 61,105 62,390 63,638 Cash and cash equivalents at endof reporting period - - - - -


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National Mental Health Commission


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NATIONAL MENTAL HEALTH COMMISSION

Section 1: Agency overview and resources..........................................................1311.1 Strategic Direction Statement......................................................................1311.2 Agency Resource Statement.......................................................................1331.3 Budget Measures.........................................................................................133Section 2: Outcomes and planned performance...................................................1342.1 Outcomes and performance information......................................................134Section 3: Explanatory tables and budgeted financial statements......................1393.1 Explanatory tables.......................................................................................1393.2 Budgeted Financial Statements...................................................................140

129

NMHC Budget Statements

NATIONAL MENTAL HEALTH COMMISSION



The National Mental Health Commission (NMHC) is an executive agency established on 1 January 2012 under the Public Service Act 1999 within the Prime Minister and Cabinet Portfolio. Ten Commissioners, including the Chair and CEO, comprise Australia’s first National Mental Health Commission. The Prime Minister has appointed the Hon Mark Butler MP as Minister Assisting the Prime Minister on Mental Health Reform. The NMHC will report annually on its progress to the Prime Minister and Minister Butler has responsibility for day to day oversight of the work of the NMHC.

The NMHC will contribute to the government’s agenda to improve outcomes for people with a lived experience of mental health issues, their families, carers and other support people. Through an independent, system wide accountability, reporting and advisory role, and through high profile, cross sectoral leadership and collaboration the NMHC will: monitor, evaluate and independently report on the performance of the

systems that support Australians with a lived experience of mental health issues. Central to this will be the development, management, and publication of an annual National Report Card on Mental Health and Suicide Prevention

develop, collate and analyse data and reports from other sources, including Commonwealth agencies and internationally, with a particular focus on ensuring a cross sectoral perspective to mental health reform

engage people with a lived experience of mental health issues, their families, carers and other support people in mental health policy and service improvements

provide independent policy advice to government in consultation with relevant agencies

build relationships and partner with stakeholders to leverage effort including: service providers, peak community and professional bodies, government agencies, researchers, academics and state and territory governments

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produce key operational documents including a Three Year Strategic Plan, a 12 month Work Plan, a Participation and Engagement Framework and a Communications Strategy.

The main challenge for the NMHC in 2012-13 is to quickly and effectively establish itself while delivering the first National Report Card on Mental Health and Suicide Prevention by the end of 2012. The Strategic Plan, Work Plan and Communications Strategy will be particularly important to articulating the NMHC’s strategic priorities, operational capacity and how the sector and community can contribute to the NMHC’s agenda.

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Table 1.1: NMHC Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationDepartmental appropriation - 2,347 2,347 788 Total - 2,347 2,347 788

Administered expensesOutcome 1 - 4,158 4,158 1,981 Total - 4,158 4,158 1,981

Total ordinary annual services A - 6,505 6,505 2,769 Other servicesDepartmental non-operating

Equity injections - - - 172 Total - - - 172

Total other services B - - - 172 Total available annual - 6,505 6,505 2,941

appropriationsSpecial appropriations - - - - Total special appropriations C - - - - Total appropriations excluding

Special Accounts - 6,505 6,505 2,941 Special Accounts - - - - Total Special Account D - - - - Total resourcingA+B+C+D - 6,505 6,505 2,941 Total net resourcing for the NMHC - 6,505 6,505 2,941

1 Appropriation Bill (No.1) 2012-13Note: All figures are GST exclusive

1.3 BUDGET MEASURES

There are no Budget measures relating to the NMHC in the 2012-13 Budget.

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The outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the NMHC in achieving government outcomes.

Outcome 1: Provide expert advice to the Australian Government and cross-sectoral leadership on the policy, programs, services and systems that support mental health in Australia, including through administering the annual National Report Card on Mental Health and Suicide Prevention, undertaking performance monitoring and reporting, and engaging consumers and carers.

Outcome 1 Strategy

The NMHC, through Outcome 1, provides strong Commonwealth leadership in mental health reform and strengthens the public accountability of system performance and service outcomes through independent monitoring, assessment and reporting on the mental health impacts of a range of health and non-health service systems.

Mental disorders account for 13.1 per cent of Australia’s total burden of disease and injury1 and are estimated to cost the Australian economy $20 billion annually, including through lost productivity and labour participation. In a 2007 survey, 45.5 per cent of Australians 16-85 years of age reported experiencing at least one, or a combination of, mental health issues, including anxiety, mood or substance-abuse disorders, at some point in their lifetime. 20 per cent of Australians reported experiencing one or a combination of these disorders in the 12 months prior to interview.2

The Australian Government is committed to ensuring Australia has a sustainable and effective mental health system. To demonstrate this

1 Australian Institute of Health and Welfare, 2007. The burden of disease and injury in Australia, 2003, AIHW, Canberra.

2 Australian Bureau of Statistics, 2008. 2007 National Survey of Mental Health and Wellbeing: Summary of Results (cat. No. 4326.0), ABS, Canberra.

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commitment and to plan more effectively for the future mental health needs of the community, Australia’s first national body has been established to give mental health prominence at a national level.

The NMHC’s primary strategy to deliver results under Outcome 1 in its first full year of operation is through the inaugural ‘National Report Card on Mental Health and Suicide Prevention’ ('the Report Card'). The Report Card will be produced annually to measure and give greater transparency to the performance of the systems that support people with a lived experience of mental health issues, their families, carers and other support people.

The first Report Card will be published by the end of 2012 following development work to determine its content, scope and format. It will also be informed by a multi-faceted national consultation process involving people with a lived experience of mental health issues, their families, carers and other support people, service providers, government and non-government organisations, experts and the broader community. The first Report Card will establish the areas in which the NMHC will focus its future efforts and report cards.

Other work under Outcome 1 will be determined through the development of the Three Year Strategic Plan which is expected to be finalised by the start of the 2012-13 financial year.

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Outcome Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1 by program.



expenses

$'000 $'000

Program 1.1: National Mental Health CommissionAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,981 4,158Departmental expenses

Departmental appropriation 1 788 2,347Expenses not requiring appropriation in the Budget year 2 17 34

Total for Program 1.1 2,786 6,539Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 1,981 4,158Departmental expenses

Departmental appropriation 1 788 2,347Expenses not requiring appropriation in the Budget year 2 17 34

Total expenses for Outcome 1 2,786 6,5392011-12 2012-13


Outcome 1: Provide expert advice to the Australian Government and cross-sectoral leadership on the policy, programs, services and systems that support mental health in Australia, including through administering the Annual National Report Card on Mental Health and Suicide Prevention, undertaking performance monitoring and reporting, and engaging consumers and carers.

1 Departmental appropriation refer to ‘Ordinary annual services (Appropriation Bill No. 1)’.2 Expenses not requiring appropriation in the Budget year is made up of amortisation expense and audit

fees.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Program 1.1: National Mental Health Commission

Program 1.1 ObjectivesThe objectives of this program are: to develop, collate and analyse data and reports, and in particular

produce the annual National Report Card on Mental Health and Suicide Prevention

to partner with other organisations and administer a range of other activities that build relationships, strengthen public accountability and transparency and improve cross sectoral system performance and service outcomes

to develop, publish and implement a Three Year Strategic Plan

to develop, publish and implement a Communications Strategy

to partner with key organisations in the development of a Participation and Engagement Framework, to ensure the meaningful contribution of people with a lived experience of mental health issues, their families, carers and other support people to the NMHC’s work, particularly the Report Card

to provide high quality, independent policy advice to the Australian Government and to distribute findings to the broader sector in order to influence reform.

Program 1.1 ExpensesThe NMHC will intensify operational activity over the Budget and forward years following its establishment on 1 January 2012. Additional staff and resources will be employed from 2012-13 to meet the program objectives.


$'000 $'000 $'000 $'000 $'000Annual administered expenses:

Administered appropriation 1,981 4,158 4,016 4,121 4,167Annual departmental expenses:

Departmental appropriation1 788 2,347 2,372 2,403 2,431Expenses not requiring appropriation in

the Budget year 2 17 34 34 34 34Total program expenses 2,786 6,539 6,422 6,558 6,632

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1 Departmental appropriation refers ‘Ordinary annual services (Appropriation Bill No. 1)’.2 Expenses not requiring appropriation in the Budget year is made up of amortisation expense and audit fees.

138


Program 1.1 Deliverables The NMHC 2012-13 program deliverables include: the first annual National Report Card on Mental Health and Suicide

Prevention

the Three Year Strategic Plan

the Communications Strategy

early work on a Participation and Engagement Framework

Program 1.1 Key Performance Indicators High level of satisfaction of the Prime Minister with the timeliness and

quality of the NMHC’s products, policy advice and support on issues relating to mental health.

Publication of the first annual National Report Card on Mental Health and Suicide Prevention by the end of 2012.

Publication, following stakeholder consultation, of a Three Year Strategic Plan and related 12 month operational Work Plan by 1 July 2012 that sets key priority areas.

Publication of a Communications Strategy and leadership shown in national mental health communications activity.

High level of community and sector engagement in and satisfaction with the NMHC’s work, including through the development of a Participation and Engagement Framework in partnership with relevant organisations and peak bodies.

Fully staffed and effectively operating Commission.

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3.1.1 Movement of administered funds between yearsThe NMHC does not have any movement of administered funds between years.

3.1.2 Special AccountsThe NMHC does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe 2012-13 Australian Government Indigenous Statement is not applicable because the NMHC has no Indigenous specific expenses. However, the NMHC has identified that the mental health and social and emotional wellbeing of Aboriginal and Torres Strait Islander peoples is a priority area for its work, and a core focus of the National Report Card on Mental Health and Suicide Prevention. The NMHC has also committed to holding a minimum of one meeting a year with a focus on Indigenous mental health matters, which may involve holding a meeting within an Indigenous community.

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3.2.1 Differences in agency resourcing and financial statementsThere are no differences between resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between whole of government level financial reporting (under Australian Accounting Standard 1049) and entity level financial reporting.


Income StatementThe NMHC was established as an executive agency on 1 January 2012. Revenue from government will increase from $0.8m in 2011-12 to $2.4m in 2012-13 reflecting a full year of operational activity.

Balance SheetThe NMHC has a small liability base reflecting departmental employee leave entitlements.

Administered

Schedule of budgeted income and expense administered on behalf of governmentExpenses administered on behalf of government increase from $2.0m in 2011-12 to $4.2m in 2012-13 reflecting a full year of operational activity for the NMHC. The administered expenditure of the NMHC reflects the costs of delivering the National Report Card on Mental Health and Suicide Prevention and related activities.

Schedule of budgeted assets and liabilities administered on behalf of governmentThe NMHC has no administered assets or liabilities.

141




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 500 1,760 1,779 1,802 1,823 Suppliers 313 612 618 626 633 Depreciation and amortisation 17 34 34 34 34 Total expenses 830 2,406 2,431 2,462 2,490 LESS: OWN-SOURCE INCOMEGainsOther 25 25 25 25 25 Total gains 25 25 25 25 25 Total own-source income 25 25 25 25 25 Net cost of (contribution by)

services 805 2,381 2,406 2,437 2,465 Revenue f rom Government 788 2,347 2,372 2,403 2,431

Surplus (Deficit) attributable to the Australian Government (17) (34) (34) (34) (34)

Total comprehensive income (loss) attributable to the Australian Government (17) (34) (34) (34) (34)



(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 17 34 34 34 34

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (17) (34) (34) (34) (34)



142



Actual Revised Forw ard Forw ard Forw ardbudget estimate estimate estimate

2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Cash and equivalents 50 100 100 100 100 Trade and other receivables 118 242 245 248 282

Total financial assets 168 342 345 348 382 Non-financial assets

Intangibles 155 121 87 53 19 Total non-financial assets 155 121 87 53 19 Total assets 323 463 432 401 401 LIABILITIESPayables

Suppliers 25 50 50 50 50 Total payables 25 50 50 50 50

ProvisionsEmployee provisions 105 169 172 176 179

Total provisions 105 169 172 176 179 Total liabilities 130 219 222 226 229 Net assets 193 244 210 175 172 EQUITY*

Contributed equity 172 172 172 172 172 Reserves 38 123 123 122 153 Retained surplus

(accumulated deficit) (17) (51) (85) (119) (153) Total equity 193 244 210 175 172 * 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

143




reserve capital$'000 $'000 $'000 $'000


previous period (17) 38 172 193 Adjusted opening balance (17) 38 172 193 Comprehensive income

Surplus (deficit) for the period (34) 85 - 51 Total comprehensive income recognised directly in equity (34) 85 - 51

Attributable to the Australian Government (34) 85 - 51 Estimated closing balance as at 30 June 2013 (51) 123 172 244 Closing balance attributable to the

Australian Government (51) 123 172 244 Prepared on Australian Accounting Standards basis.

144




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Appropriations 670 2,223 2,369 2,400 2,397 Total cash received 670 2,223 2,369 2,400 2,397 Cash used

Employees 395 1,696 1,776 1,798 1,820 Suppliers 263 562 593 601 608 Cash to the OPA (38) (85) - 1 (31)

Total cash used 620 2,173 2,369 2,400 2,397 Net cash from (used by)

operating activities 50 50 - - - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 172 - - - -

Total cash used 172 - - - - Net cash from (used by)

investing activities (172) - - - - FINANCING ACTIVITIESCash received

Contributed equity 172 - - - - Total cash received 172 - - - - Net cash from (used by)

financing activities 172 - - - - Net increase (decrease)

in cash held 50 50 - - - Cash and cash equivalents at the

beginning of the reporting period - 50 100 100 100 Cash and cash equivalents at the


145


Table 3.2.5: Departmental Capital Budget StatementActual Revised Forw ard Forw ard Forw ard

budget estimate estimate estimate2011-12 2012-13 2013-14 2014-15 2015-16


Equity injections - Bill 2 172 - - - - Total capital appropriations 172 - - - - Total new capital appropriations

Provided for: Purchase of non-financial assets 172 - - - -

Total Items 172 - - - - PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 172 - - - -

TOTAL 172 - - - -

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 172 - - - - Total cash used to

acquire assets 172 - - - - 1 Includes both current and prior appropriations Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of Asset Movements (2012-13)Computer Total

softw are andintangibles

$'000 $'000As at 1 July 2012Gross book value 172 172Accumulated amortisation 17 17Opening net book balance 155 155Other movementsAmortisation expense 34 34Total other movements 34 34As at 30 June 2013Gross book value 172 172Accumulated amortisation 51 51Closing net book balance 121 121


147


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 1,981 4,158 4,016 4,121 4,167





149


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (for the period ended 30 June)The NMHC has no assets or liabilities administered on behalf of government.

150




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash used

Suppliers 1,981 4,158 4,016 4,121 4,167 Total cash used 1,981 4,158 4,016 4,121 4,167 Net cash from (used by)


cash held (1,981) (4,158) (4,016) (4,121) (4,167) Cash and cash equivalents at

beginning of reporting period - - - - - Cash from Off icial Public Account for:

- Appropriations 1,981 4,158 4,016 4,121 4,167 Cash and cash equivalents at end of reporting period - - - - -


151

Office of National Assessments


151

ONA Budget Statements

OFFICE OF NATIONAL ASSESSMENTS

Section 1: Agency overview and resources..........................................................1551.1 Strategic Direction Statement...............................................................................155

1.2 Agency Resource Statement................................................................................156

1.3 Budget Measures.................................................................................................157

Section 2: Outcomes and planned performance...................................................1582.1 Outcomes and performance information..............................................................158



153


OFFICE OF NATIONAL ASSESSMENTS



The planned outcome of the Office of National Assessments (ONA) is the advancement of Australia’s national interests through increased government awareness of international developments affecting Australia.

ONA is an all-source assessment agency that reports directly to the Prime Minister. ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. ONA is also responsible for advancement of Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

155




Table 1.1: ONA Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012

Estimate Proposed Total Actualof prior at Budget = estimate available


2012-13 2012-13 2012-113 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 - - - 20,041 Departmental appropriation3 - 31,148 31,148 35,078 Total - 31,148 31,148 55,119

Total ordinary annual services A - 31,148 31,148 55,119 Other servicesTotal other services B - - - - Total available annual

appropriations - 31,148 31,148 55,119 Special appropriationsTotal special appropriations C - - - - Total appropriations excluding

Special Accounts - 31,148 31,148 55,119 Total Special Account D - - - - Total resourcingA+B+C+D - 31,148 31,148 55,119 Total net resourcing for agency - 31,148 31,148 55,119


further details). For accounting purposes this amount has been designated as 'contributions by owners'.Note: All figures are GST exclusive.

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1.3 BUDGET MEASURES

There are no Budget measures relating to the ONA in the 2012-13 Budget.

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ONA’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of ONA in achieving government outcomes.

Outcome 1: Advancement of Australia’s national interests through increased government awareness of international developments affecting Australia.

Outcome 1 StrategyThe key strategies by which ONA will seek to achieve its outcome are:• to maintain a strong customer focus by:

– staying in close contact with its customers, ensuring that ONA and the intelligence collection agencies are aware of the international issues of concern to them

– providing quality and timely coverage of subjects of political, strategic and economic significance to Australia

– seeking and using customer feedback to assess the effectiveness of its work and improve the service that ONA provides.

• to encourage the highest standards of intelligence analysis and assessment by:– employing the best staff available, and assisting them to fulfil their

potential through on-the-job training, travel and participation in staff development schemes

– promoting objectivity, creativity and analytical rigour

– facilitating access by staff to the broadest possible range of information and ideas through provision of highly capable information retrieval and storage systems.

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159


• to keep Australia’s international intelligence activities under continuous review by:– leading and supporting processes and committees to coordinate the

foreign and broader national security intelligence activities of Australian intelligence agencies

– monitoring their performance and resourcing in relation to the government’s priorities

– where appropriate, recommending measures to improve the effectiveness of Australia’s foreign intelligence effort.

• to provide a supportive and stimulating work environment, ONA will:– cultivate and recognise excellence in analytical and support areas by

all means, including the use of the government’s workplace reforms

– encourage teamwork and close communication between management and staff at all levels

– ensure prudent but imaginative use of its financial resources

– promote the application of equal employment opportunity, industrial democracy, access and equity, and occupational health and safety principles.

ONA depends on regular feedback about its work program from stakeholders (the Prime Minister, ministers and departments) and has developed a variety of mechanisms that help evaluate its effectiveness in achieving planned outcomes and the quality of its outputs. These are:• close liaison with the Prime Minister’s office and with other ministers and

their departments• annual review of ONA’s performance by the Department of the Prime

Minister and Cabinet• regular internal review of ONA’s analytical and resource management

objectives and performance• evaluation of ONA’s statutory independence by the Inspector-General of

Intelligence and Security.

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Outcome Expense StatementTable 2.1 provides an overview of the total expenses for outcome 1, by program.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Advancement of Australia's national interests 2011-12 2012-13through increased government awareness of international Estimated Estimateddevelopments affecting Australia actual expenses

expenses$'000 $'000

Program 1.1: Assessment and reportsDepartmental expenses

Departmental appropriation 1 20,339 19,826 Expenses not requiring appropriation in the Budget year 2 1,980 2,605

Total for Program 1.1 22,319 22,431 Program 1.2: Coordination and evaluationDepartmental expenses

Departmental appropriation 1 8,717 8,497 Expenses not requiring appropriation in the Budget year 2 848 1,116

Total for Program 1.2 9,565 9,613 Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 29,056 28,323 Expenses not requiring appropriation in the Budget year 2 2,828 3,721


Average Staffing Level (number) 141 148 1 Departmental appropriation relates to ‘Ordinary annual services (Appropriation Bill No. 1)’.2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense,

amortisation expense and audit fees.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Contributions to Outcome 1 Program 1.1: Assessments and Reports

Program 1.1 ObjectiveProvide accurate and timely assessments and reports to the Prime Minister, senior ministers and officials.

Program 1.1 ExpensesThe expenses for Program 1.1 are listed in the following table.



Assessment and reports 20,339 19,826 20,084 20,459 20,656 Expenses not requiring appropriation in

the Budget year 1 1,980 2,605 2,689 2,769 2,857 Total departmental expenses 22,319 22,431 22,772 23,228 23,513


Program 1.1 Deliverables The program deliverables include accurate and timely assessments and reports to the Prime Minister, senior ministers and officials that:• warn of threats and adverse developments and opportunities affecting

Australia’s national interests• inform government policy making.

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Program 1.1 Key Performance Indicators• Satisfaction of the Prime Minister and other key ministers as to the

level of analysis and assessment provided to government.

• ONA depends on regular feedback on its work program from clients (the Prime Minister, ministers and departments) and has developed a variety of mechanisms that help evaluate its effectiveness in achieving planned outcomes and the quality of its outputs. These are:

close liaison with the Prime Minister’s office and with other ministers and their departments

annual review of ONA’s performance by the Department of the Prime Minister and Cabinet

regular internal review of ONA’s analytical and resource management objectives and performance

evaluation of ONA’s statutory independence by the Inspector-General of Intelligence and Security.

The measureable targets are:• satisfaction of the Prime Minister with the timeliness, accuracy and

content of reports

• positive judgement of the ONA product is positively judged by clients in terms of uniqueness, timeliness and responsiveness, relevance and accuracy.

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Program 1.2: Coordination and Evaluation

Program 1.2 ObjectivesThe objective of this program is to advance Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

Program 1.2 ExpensesThe expenses for Program 1.2 are listed in the following table.



Coordination and evaluation 8,717 8,497 8,607 8,768 8,853 Expenses not requiring appropriation in

the Budget year 1 848 1,116 1,152 1,187 1,224 Total departmental expenses 9,565 9,613 9,760 9,955 10,077


Program 1.2 Deliverables The program deliverables include:• improved intelligence capability and performance through the effective

coordination and evaluation of Australia’s foreign intelligence activities

• provide advice on the adequacy of resources for foreign intelligence activities

• effective intelligence relationships with close allies and partners.

Program 1.2 Key Performance Indicators• ONA’s intelligence coordination mechanisms are credible and effective

and deliver well-coordinated foreign intelligence support to government.

• ONA’s evaluation processes are complete and credible and inform government.

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3.1.1 Movement of administered funds between yearsONA does not have any movement of administered funds between years.

3.1.2 Special AccountsONA does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureONA does not have any Indigenous-specific expenditure.

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3.2.1 Differences in agency resourcing and financial statementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2012-13. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2012-13.

3.2.3 Analysis of budgeted financial statementsIncome StatementONA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2012-13 and the forward years.

The retained and committed surpluses from previous years will used to continue the implementation of business critical measures deferred or stalled because of delays in ONA’s new building program.

Supplier and employee expenses have stabilised at approximately $29.3m per year and are expected to remain at this level across forward years.

Balance SheetIn 2011-12 the fit-out of ONA’s new office accommodation was completed. ONA relocated to the refurbished Patents Office at 2 National Circuit, Barton in October 2011. Fit-out costs relating to the new office accommodation are capitalised against the building asset class in the balance sheet.

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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 18,136 18,345 17,898 18,243 18,455 Suppliers 10,950 10,008 10,823 11,014 11,084 Depreciation and amortisation 2,798 3,691 3,811 3,926 4,051 Total expenses 31,884 32,044 32,532 33,183 33,590 LESS: OWN-SOURCE INCOMEGainsOther 30 30 30 30 30 Total gains 30 30 30 30 30 Total own-source income 30 30 30 30 30 Net cost of (contribution by)


the Australian Government (2,798) (3,691) (3,811) (3,926) (4,051) Total comprehensive income (loss)

attributable to the Australian Government (2,798) (3,691) (3,811) (3,926) (4,051)




plus depreciation/amortisation expensespreviously funded through revenueappropriations1 2,798 3,691 3,811 3,926 4,051

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (2,798) (3,691) (3,811) (3,926) (4,051)

1 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenueappropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000




Land and buildings 25,431 24,198 22,815 21,432 20,049 Property, plant and equipment 7,837 7,962 8,750 10,341 11,842 Intangibles 1,606 1,848 1,481 1,157 830 Other 203 822 935 1,048 1,161


Suppliers 20 20 20 20 20 Other services 400 400 400 400 400

Total payables 420 420 420 420 420 Provisions

Employee provisions 4,874 5,069 5,272 5,483 5,702 Total provisions 4,874 5,069 5,272 5,483 5,702 Total liabilities 5,294 5,489 5,692 5,903 6,122 Net assets 39,972 39,106 38,144 38,028 37,819 EQUITY*


(accumulated deficit) 10,571 6,880 3,069 (857) (4,908)

Total Equity 39,972 39,106 38,144 38,028 37,819 * 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

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reserve capital$'000 $'000 $'000 $'000


previous period 10,571 617 28,784 39,972 Adjusted opening balance 10,571 617 28,784 39,972

Surplus (deficit) for the period (3,691) - - (3,691) Total comprehensive income

recognised directly in equity (3,691) - - (3,691) Other services

Appropriation (departmental)capital budget - - 2,825 2,825

Sub-total transactions with owners - - 2,825 2,825 Estimated closing balance



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2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Appropriations 35,559 28,241 28,601 29,129 29,403 Net GST received 2,140 1,200 1,284 1,399 1,410


Employees 17,943 18,150 17,696 18,032 18,236 Suppliers 13,679 11,291 12,190 12,496 12,576


operating activities 6,077 - - - - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 16,342 2,825 2,849 3,810 3,842


investing activities (16,342) (2,825) (2,849) (3,810) (3,842) FINANCING ACTIVITIESCash received

Contributed equity 10,265 2,825 2,849 3,810 3,842 Total cash received 10,265 2,825 2,849 3,810 3,842 Net cash from (used by)

financing activities 10,265 2,825 2,849 3,810 3,842 Net increase (decrease)


beginning of the reporting period 253 253 253 253 253 Cash and cash equivalents at the


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Capital budget - Bill 1 (DCB) 6,022 2,825 2,849 3,810 3,842 Total capital appropriations 6,022 2,825 2,849 3,810 3,842 Total new capital appropriations Provided For:

Purchase of non-financial assets 6,022 2,825 2,849 3,810 3,842 Total Items 6,022 2,825 2,849 3,810 3,842 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 6,022 2,825 2,849 3,810 3,842 Funded internally f rom

departmental resources2 10,320 - - - - TOTAL 16,342 2,825 2,849 3,810 3,842 RECONCILIATION OF CASH


Total purchases 16,342 2,825 2,849 3,810 3,842 Total cash used to

acquire assets 16,342 2,825 2,849 3,810 3,842 1 Include purchase from current and previous years' Departmental Capital Budgets (DCBs).2 Includes the following sources of funding: annual and prior year appropriations, donations and

contributions, gifts, internally developed assets, s31 relevant agency receipts, proceeds from the sale of assets.


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equipment$'000 $'000 $'000 $'000


and impairment 1,150 4,224 3,712 9,086 Opening net book balance 25,431 7,837 1,606 34,874 CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 300 1,783 742 2,825 Total additions 300 1,783 742 2,825 Other movementsDepreciation/amortisation expense 1,533 1,658 500 3,691 As at 30 June 2013Gross book value 26,881 13,844 6,060 46,785 Accumulated depreciation/amortisation

and impairment 2,683 5,882 4,212 12,777 Closing net book balance 24,198 7,962 1,848 34,008

1 Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2012-13 for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses.


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173

OCO Budget Statements

OFFICE OF THE COMMONWEALTH OMBUDSMAN

Section 1: Agency overview and resources..........................................................1771.1 Strategic Direction Statement......................................................................1771.2 Agency Resource Statement.......................................................................1781.3 Budget Measures.........................................................................................179

Section 2: Outcomes and planned performance...................................................1802.1 Outcomes and performance information......................................................180

Section 3: Explanatory tables and budgeted financial statements......................1843.1 Explanatory tables.......................................................................................1843.2 Budgeted Financial Statements...................................................................185

175


OFFICE OF THE COMMONWEALTH OMBUDSMAN



The planned outcome of the Office of the Commonwealth Ombudsman (OCO) is fair and accountable administration by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

The OCO safeguards the community in its dealings with Australian Government agencies and related service providers by: correcting administrative deficiencies through independent review of

complaints about administrative action of Australian Government agencies and related service providers (e.g. private registered providers of education services to overseas students, postal industry operators)

assisting community members to resolve complaints about government administration action

fostering good public administration that is fair, lawful, accountable and responsive

developing policies and principles for accountability

reviewing statutory compliance by relevant agencies.

In 2012–13, the OCO will continue its focus on significant and systemic issues arising from complaints, inspections, monitoring and feedback from the community. We will continue our endeavours in improving our policies, procedures and practices to deliver efficient, practical, higher quality and more consistent responses to complaints. The strategic priorities of the OCO are to: be responsive to areas of need in allocating resources, including new

prescribed priorities

target engagement with key stakeholders, particularly to identify opportunities for collaboration with intermediaries and partners

build on work practices and organisational changes to deliver improved quality, efficiency and consistency in managing complaints, investigations and reporting

177


improve quality assurance and review of complaint handling.

178




Table 1.1: OCO Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 6,152 - 6,152 4,299 Departmental appropriation3 - 18,914 18,914 20,757 s31 relevant agency receipts4 - 1,886 1,886 2,230 Total 6,152 20,800 26,952 27,286

Total ordinary annual services A 6,152 20,800 26,952 27,286 Other servicesDepartmental non-operating

Equity injections - - - 25 Total - - - 25

Total other services B - - - 25 Total available annual





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1.3 BUDGET MEASURES

Budget measures relating to the OCO are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: OCO 2012-13 Budget measuresProgram 2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000Expense measures National Health Reform Agreement - establishment of the Administrator and the National Health Funding Body 1.1

Departmental expenses - 65 - - - Total - 65 - - - Total expense measures

Departmental - 65 - - - Total - 65 - - -

Prepared on a Government Finance Statistics (fiscal) basis

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The OCO’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the OCO in achieving government outcomes.

Outcome 1: Fair and accountable administration by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

Outcome 1 StrategyThe key strategies by which the OCO will seek to achieve its outcome are: to deliver efficient and effective complaint handling with a particular

focus on quality, consistency and throughput

to develop professional and proficient staff

to nurture the working relationship with Australian Government agencies and related service providers

to provide timely and focused assurance to Parliament and improvement in enforcement agency compliance in the use of covert powers

to conduct our own motion investigations and produce publications that promote good public administration

to enhance opportunities for collaborative outcomes through engagement with national integrity agencies, regional and international partners

to contribute to broader public debates which promote good public administration and accessibility of government program design and implementation.

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Table 2.1 provides an overview of the total expenses for Outcome 1 by program.



expenses$'000 $'000

Program 1.1: Office of the Commonwealth OmbudsmanDepartmental expenses

Departmental appropriation 1 23,475 20,161 Expenses not requiring appropriation in the Budget year 2 929 876

Total for Program 1.1 24,404 21,037 Outcome 1 Totals by appropriation typeDepartmental expenses




Outcome 1: Fair and accountable administrative action by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.




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Program 1.1: Office of the Commonwealth Ombudsman

Program 1.1 ObjectivesThe objectives of this program are: to respond effectively to new areas of complaint and continue to

develop compliance auditing expertise and improvement of auditing methodologies and reporting

to enhance staff capability to ensure quality standards for complaint handling and reporting

to ensure the continued timely and effective resolution of complaints through sound working relationships with Australian Government agencies and related service providers

to enhance engagement opportunities for collaboration with stakeholders and intermediaries, national integrity agencies, regional and international partners

to contribute to debates on key public administration, integrity, accountability, and transparency issues that promote delivery of fair and just government policies and programs

to contribute to improving transparency and accountability of government through oversight and administration of prescribed legislative functions

to undertake own motion investigations and produce reports.

Program 1.1 ExpensesThere are no significant changes in the level of activity or funding required for this program in 2012-13 or the forward years.


('000) $'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Departmental appropriation 1 23,475 20,161 20,118 19,810 19,854 Expenses not requiring appropriation in

the Budget year 2 929 876 876 886 886 Total departmental expenses 24,404 21,037 20,994 20,696 20,740 1


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2. Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program 1.1 DeliverablesThe program deliverables include: improved public satisfaction with the quality of services provided by

the OCO

better targeted stakeholder engagement through the provision of information and education regarding the role and importance of the OCO

increased monitoring of internal service standards for complaint handling

identification and reporting on significant and systemic problems in public administration, making recommendations and reporting on implementation

demonstrated contribution to debates through speeches, reports, submissions and best practice guides

increased Parliament and public assurance that covert powers are lawfully used by enforcement agencies.

Program 1.1 Key Performance Indicators Improved administration following the Ombudsman’s reports and

investigations.

Improved complaint handling within agencies.

Improved compliance with legal requirements by enforcement agencies in the use of covert powers.

Inspection reports will be timely and identify areas for improvement.

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Section 3: Explanatory tables and budgeted financial statementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2012-13 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.


3.1.1 Movement of administered funds between yearsThe OCO has no movement of administered funds between years.

3.1.2 Special AccountsThe OCO does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureFunding for independent oversight of the Northern Territory Emergency Response measure terminates at the end of the 2011–12 financial year.

Table 3.1.3: Australian Government Indigenous ExpenditureOther Total


Departmental 2012-13 - - - - - - Departmental 2011-12 817 - - 817 - 817 Total outcome 2012-13 - - - - - - Total outcome 2011-12 817 - - 817 - 817

Total departmental 2012-13 - - - - - - Total departmental 2011-12 817 - - 817 - 817

Total AGIE 2012-13 - - - - - - Total AGIE 2011-12 817 - - 817 - 817

Appropriations


185



3.2.1 Differences in agency resourcing and financial statementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the office in 2012–13. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2012–13.


Income Statement The OCO is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense in 2012–13 and the forward years.

Revenue from government (appropriation funding) has decreased from $20.0m in 2011-12 to $18.3m in 2012-13. This reflects reduced funding as a result of: terminating measure related to the oversight role of the Northern Territory

Emergency Response - $0.9m

terminating measure relating to Christmas Island processing oversight - $0.4m

2.5% efficiency dividend - $0.5m.

In 2012-13 the OCO received additional funding of $0.07m for the oversight of the National Health Funding Body and Administrator.

Employee expenses will reduce in line with the reduced appropriation as the most significant supplier costs are fixed in short term.

Balance SheetThe OCO’s budgeted net asset position at 30 June 2013 will be $1.8m (2012–11: $2.1m). The OCO’s primary liability continues to be accrued employee entitlements.

Statement of Changes in EquityThe statement of changes in equity shows the expected movements in equity over the 2012–13 year. The retained earnings portion of equity will reduce, offset by an increase in the contributed equity portion wherein the funding for the OCO’s departmental capital budget is recorded.

186


Statement of Cash FlowsThe office maintains a working cash balance of $0.2m.

Capital Budget StatementThe capital budget statement shows a continuing investment in non-financial assets. This includes purchase of new assets as well as replacement of existing assets. The table also shows the amount of appropriation budget in relation to the departmental capital budget.

Statement of Asset MovementsThe statement of asset movements expands on the capital budget statement and shows, by category of assets, the change in value from the beginning to the end of the 2012–13 year.

187




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 17,742 14,434 14,376 14,281 14,388 Suppliers 5,763 5,757 5,772 5,569 5,506 Depreciation and amortisation 899 846 846 846 846 Total expenses 24,404 21,037 20,994 20,696 20,740 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 1,877 1,856 1,919 1,511 1,400 Total own-source revenue 1,877 1,856 1,919 1,511 1,400 GainsSale of assetsOther 30 30 30 40 40 Total gains 30 30 30 40 40 Total own-source income 1,907 1,886 1,949 1,551 1,440 Net cost of (contribution by)


the Australian Government (2,499) (846) (846) (846) (846) Total comprehensive income (loss)

attributable to the Australian Government (2,499) (846) (846) (846) (846)



(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. (1,600) - - - -


Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (2,499) (846) (846) (846) (846)



188




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000




Property, plant and equipment 3,034 2,839 2,753 2,662 2,590 Intangibles 496 454 306 323 329 Other 245 245 245 245 245


Suppliers 557 601 630 680 680 Other 2,664 2,521 2,497 2,419 2,303

Total payables 3,221 3,122 3,127 3,099 2,983

ProvisionsEmployee provisions 3,757 3,757 3,757 3,757 3,757 Other 123 111 111 111 111

Total provisions 3,880 3,868 3,868 3,868 3,868 Total liabilities 7,101 6,990 6,995 6,967 6,851 Net assets 2,082 1,845 1,611 1,537 1,471 EQUITY*


(accumulated deficit) (2,220) (3,066) (3,912) (4,758) (5,604) Total Equity 2,082 1,845 1,611 1,537 1,471


189




reserve capital$'000 $'000 $'000 $'000


previous period (2,220) 563 3,739 2,082 Adjusted opening balance (2,220) 563 3,739 2,082 Comprehensive income





as at 30 June 2013 (3,066) 563 4,348 1,845 Closing balance attributable to the

Australian Government (3,066) 563 4,348 1,845 Prepared on Australian Accounting Standards basis.

190




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Goods and services 1,802 1,785 1,949 1,551 1,440 Appropriations 22,014 18,356 18,156 18,299 18,454


Employees 17,742 14,434 14,376 14,281 14,388 Suppliers 5,709 5,707 5,729 5,569 5,506


operating activities 365 - - - - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 1,142 609 612 772 780

Total cash used 1,142 609 612 772 780 Net cash from (used by)

investing activities (1,142) (609) (612) (772) (780) FINANCING ACTIVITIESCash received



in cash held (18) - - - - Cash and cash equivalents at the



191





Capital budget - Bill 1 (DCB) 759 609 612 772 780 Equity injections - Bill 2 25 - - - -

Total capital appropriations 784 609 612 772 780 Total new capital appropriations Provided for:

Purchase of non-financial assets 784 609 612 772 780 Total Items 784 609 612 772 780 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 1,142 609 612 772 780

TOTAL 1,142 609 612 772 780 RECONCILIATION OF CASH


Total purchases 1,142 609 612 772 780 Total cash used to

acquire assets 1,142 609 612 772 780 1 Includes purchases from current and previous year's department capital budgets.DCB = Departmental Capital BudgetPrepared on Australian Accounting Standards basis.

192




equipment$'000 $'000 $'000

As at 1 July 2012Gross book value 6,959 1,992 8,951 Accumulated

and impairment 3,925 1,496 5,421 Opening net book balance 3,034 496 3,530 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation

annual services 1 403 206 609 Total additions 403 206 609 Other movementsDepreciation/amortisation expense 598 248 846 As at 30 June 2013Gross book value 7,362 2,198 9,560 Accumulated

and impairment 4,523 1,744 6,267 Closing net book balance 2,839 454 3,293



193

Office of the Inspector-General of Intelligence and Security


193

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY



1.3 Budget Measures.................................................................................................198




195

OIGIS Budget Statements

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY



The planned outcome for the Office of the Inspector-General of Intelligence and Security (OIGIS) is the provision of independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

OIGIS provides a specialised review mechanism for the six agencies that comprise the Australian Intelligence Community: Australian Security Intelligence Organisation (ASIO)

Australian Secret Intelligence Service (ASIS)

Defence Imagery and Geospatial Organisation (DIGO)

Defence Intelligence Organisation (DIO)

Defence Signals Directorate (DSD)

Office of National Assessments (ONA).

A proactive inspection program is undertaken by OIGIS each year into the activities of each Australian Intelligence Community agency. Formal inquiries may also be conducted at the Inspector-General’s own motion, as a result of complaints received, or by request from relevant ministers. The Prime Minister can request the Inspector-General to inquire into an intelligence or security matter relating to an Australian Government agency outside of the Australian Intelligence Community. During formal inquiries, the Inspector-General of Intelligence and Security Act 1986 provides for the use of strong coercive powers, immunities and protections.

In conducting its inquiries and inspections, OIGIS focuses on compliance by the Australian Intelligence Community agencies with Australian law and ministerial directions, the propriety of their activities, and respect for human rights.

197




Table 1.1: OIGIS Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 1,873 - 1,873 1,695 Departmental appropriation3 - 2,190 2,190 2,250

s31 relevant agency receipts4 - - - 114 Total 1,873 2,190 4,063 4,059


Equity injections 53 - 53 108 Total 53 - 53 108

Total other services B 53 - 53 108 Total available annual



1 Appropriation Bill (No.1) 2012-13.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $Nil in 2012-13 for the Departmental Capital Budget (refer to table 3.2.5 for


1.3 BUDGET MEASURES

There are no measures relating to OIGIS in the 2012-13 Budget.

198





OIGIS’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of OIGIS in achieving government outcomes.

Outcome 1: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

Outcome 1 StrategyThe key strategies by which OIGIS will seek to achieve its outcome are: to continue and expand the agency’s inspection activities, which involve

proactively monitoring and reviewing the activities of the Australian Intelligence Community agencies

where appropriate, to initiate ‘own motion’ inquiries and investigate complaints or referrals about the activities of the Australian Intelligence Community agencies

at the request of the Prime Minster, to inquire into an intelligence and security matter of a non Australian Intelligence Community agency.

199


Outcome Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1 by program.



expenses$'000 $'000

Program 1.1: Office of the Inspector General of Intelligence and SecurityDepartmental expenses







Outcome 1: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia's intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities


2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, IT and other services provided free of charge.


200



Program 1.1: Office of the Inspector-General of Intelligence and Security

Program 1.1 ObjectivesThe objectives of this program are: to fulfil the responsibilities and functions outlined in the Inspector-

General of Intelligence and Security Act 1986

to provide independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies are acting legally and with propriety.

Program 1.1 ExpensesThe most significant program expenses are employee-related expenses. OIGIS also receives significant assistance free of charge from the Department of the Prime Minister and Cabinet.

In recent years employee numbers have increased in line with increases in the size and activities of the Australian Intelligence Community and in the role of the OIGIS. At this stage the budget includes no allowance for further increases in employee numbers.

Factors that may have future resourcing implications include: changes in Australian Intelligence Community activities

changes in the jurisdiction or role of OIGIS

changes in complaint or inquiry numbers.


$'000 $'000 $'000 $'000 $'000



the Budget year2 245 131 131 131 131 Total departmental expenses 2,486 2,321 2,331 2,345 2,365


2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, IT and other services provided free of charge.

.

Program 1.1 Deliverables

201


The program deliverables include: conducting own motion inquiries as appropriate

undertaking a comprehensive inspection and visits program to monitor and review casework

providing effective and timely responses to complaints or referrals received from members of the public, ministers or members of parliament

undertaking presentations to new and existing members of the Australian Intelligence Community agencies to ensure an awareness and understanding of their responsibilities and accountability

liaising with other accountability or integrity agencies in Australia and overseas.

Program 1.1 Key Performance Indicators The breadth and depth of inspection work undertaken.

The timeliness of completion of inquiries or complaint resolution.

The level of acceptance by agencies, complainants and ministers of findings and recommendations of inquiries conducted.

The extent to which there has been change within the agencies as a result of activities of OIGIS.

202





3.1.1 Movement of administered funds between yearsOIGIS does not have any movement of administered funds between years.

3.1.2 Special AccountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation.

Until 2009 the office had two special accounts established under section 20 of the Financial Management and Accountability Act 1997. The accounts established were: Other Trust Monies Account - The purpose of this account was for the

expenditure of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth

Services for Other Governments and Non-Agency Bodies Account - The purpose of this account was for expenditure in connection with services performed on behalf of other governments and bodies that are not Financial Management and Accountability Act 1997 agencies.

These accounts had never been active. The Services for Other Governments and Non-Agency Bodies Account was abolished on 11 September 2009 by Determination 2009/28 issued by the Minister for Finance and Deregulation. The Other Trust Monies Account was abolished on 12 October 2010 by Determination 2010/13 issued by the Minister for Finance and Deregulation.

3.1.3 Australian Government Indigenous ExpenditureOIGIS does not have any Indigenous-specific expenditure.

203



3.2.1 Differences in agency resourcing and financial statementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2012-13. This includes equity injections and appropriations receivable that is yet to be drawn down to cover payables and provisions in the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriations provided in 2012-13.

3.2.2 Analysis of budgeted financial statementsIncome StatementOIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2012-13 and the forward years.

In line with the net cash appropriation arrangements effective from 2010-11, revenue from government has been reduced by an amount equal to depreciation and amortisation expense. Future asset replacements are funded through the departmental capital budget detailed in Table 3.2.5.

As in previous years, the most significant component of the standard operating expenditure will be salary related, which reflects the nature of the agency’s activities and functions.

The 2012-13 Budget includes an additional $0.1m to cover the expected additional costs related to the whistleblower protection scheme. These costs include one additional staff member and the associated IT and property costs.

The resources received free of charge include the office space occupied in the Department of the Prime Minister and Cabinet building (estimated value: $0.1m per year), the financial audit services provided by the Australian National Audit Office (estimated value $0.014m per year) and maintenance of the internal secure communications network provided by the Defence Signals Directorate (estimated value: $0.02m per year).

Balance SheetIn 2012-13, OIGIS’s assets are expected to remain fairly constant with no major capital purchases anticipated. The secure IT network represents the most significant component of OIGIS’s assets and was fully upgraded during 2011-12. OIGIS’s also holds office equipment and furniture, the majority of which are owned by the Department of the Prime Minister and Cabinet and provided free of charge.

204


The agency operates under a cash-level agreement with the Department of Finance and Deregulation whereby funds are only drawn down from OIGIS’s appropriation once the cash held falls below $0.2m.

OIGIS’s significant liabilities include accrued leave liabilities.

Statement of Cash FlowsThe cash holdings remain relatively constant over the years due to the cash level agreement between OIGIS and the Department of Finance and Deregulation.

Capital Budget StatementThe capital budget for 2012-13 is nil. However, minor capital purchases are expected to be funded from equity injections received in previous years.

Statement of Changes in EquityFollowing the government’s net cash arrangements, whereby depreciation expenses are no longer funded, it is expected that the equity position will continue to decrease across the forward years by the amount of the budgeted depreciation expense for the year.

205




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 1,923 1,837 1,843 1,843 1,936 Suppliers 550 471 475 489 416 Depreciation and amortisation 13 13 13 13 13 Total expenses 2,486 2,321 2,331 2,345 2,365 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 114 - - - - Other 118 118 118 118 118 Total own-source revenue 232 118 118 118 118 Total own-source income 232 118 118 118 118 Net cost of (contribution by)


the Australian Government (13) (13) (13) (13) (13) Total comprehensive income (loss)

attributable to the Australian Government (13) (13) (13) (13) (13)






1 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with aseparate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equityappropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.


206




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 102 102 167 167 167 Trade and other receivables - 45 47 48 48 Appropriations receivable 1,764 1,699 1,599 1,585 1,585 Other - GST input credits receivable 6 6 6 6 6


Property, plant and equipment 141 148 224 250 263 Total non-financial assets 141 148 224 250 263 Total assets 2,013 2,000 2,043 2,056 2,069 LIABILITIESPayables

Suppliers 208 208 195 195 195 Total payables 208 208 195 195 195

ProvisionsEmployee provisions 644 644 644 644 644

Total provisions 644 644 644 644 644 Total liabilities 852 852 839 839 839 Net assets 1,161 1,148 1,204 1,217 1,230

EQUITY *Contributed equity 447 447 516 542 568 Reserves 7 7 7 7 7 Retained surplus

(accumulated deficit) 707 694 681 668 655 Total Equity 1,161 1,148 1,204 1,217 1,230


207




reserve capital$'000 $'000 $'000 $'000


previous period 707 7 447 1,161 Adjusted opening balance 707 7 447 1,161 Comprehensive income


recognised directly in equity (13) - - (13) Estimated closing balance

as at 30 June 2013 694 7 447 1,148 Closing balance attributable to the

Australian Government 694 7 447 1,148 Prepared on Australian Accounting Standards basis.

208


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Appropriations 2,312 2,300 2,385 2,333 2,352 Total cash received 2,312 2,300 2,385 2,333 2,352 Cash used

Employees 1,876 1,837 1,843 1,843 1,936 Suppliers 484 463 475 489 416


operating activities (48) - 67 1 - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 76 20 89 39 26

Total cash used 76 20 89 39 26 Net cash from (used by)

investing activities (76) (20) (89) (39) (26) FINANCING ACTIVITIESCash received



in cash held (95) - 65 - - Cash and cash equivalents at the



209





Capital budget - Bill 1 (DCB) 9 - 69 26 26 Total capital appropriations 9 - 69 26 26 Total new capital appropriations

Provided for:Purchase of non-f inancial assets 9 - 69 26 26

Total Items 9 - 69 26 26 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 1 55 20 20 13 -

Funded by capital appropriation - DCB 2 21 - 69 26 26 TOTAL 76 20 89 39 26 RECONCILIATION OF CASH


Total purchases 76 20 89 39 26 Total cash used to

acquire assets 76 20 89 39 26 1 Includes both current and prior appropriations.2 Includes purchase from current and previous years' DCBs.DCB = Departmental Capital BudgetPrepared on Australian Accounting Standards basis.

210




equipment$'000 $'000 $'000

As at 1 July 2012Gross book value 170 6 176 Accumulated depreciation/amortisation

and impairment (29) (6) (35) Opening net book balance 141 - 141 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - other 20 - 20 Total additions 20 - 20 Other movementsDepreciation/amortisation expense (13) - (13) As at 30 June 2013Gross book value 190 6 196 Accumulated depreciation/amortisation

and impairment (42) (6) (48) Closing net book balance 148 - 148


211


Office of the Official Secretary to the Governor-General


213


OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL



1.3 Budget Measures.................................................................................................219




215

OOSGG Budget Statements

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL



The planned outcome for the Office of the Official Secretary to the Governor-General (OOSGG) is the facilitation of the performance of the Governor-General’s role through the organisation and management of official duties, management and maintenance of the official household and property, and administration of the Australian Honours and Awards system.

The OOSGG delivers its planned outcome through one program, being the ‘Support for the Governor-General and Official Functions’.

The OOSGG’s role is to support the Governor-General to enable them to perform official duties, including support in connection with official functions, the management and maintenance of Government House in Canberra and Admiralty House in Sydney, and the effective administration of the Australian Honours and Awards system. The continuation of the ten-year Vice-Regal Heritage Property Master Plan remains a priority during the forward estimates.

217




Table 1.1: OOSGG Resource Statement — Budget Estimates for 2012-13 as at Budget May 2012



2012-13 2012-13 2012-13 2011-12$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 7,074 - 7,074 4,180 Departmental appropriation3 - 11,600 11,600 11,884 s31 relevant agency receipts4 - 14 14 98 Total 7,074 11,614 18,688 16,162

Administered expensesOutcome 1 - 1,976 1,976 1,897 Total - 1,976 1,976 1,897


Equity injections - - - 1,070 Previous years' programs 6,042 - 6,042 5,268 Total 6,042 - 6,042 6,338

Total other services B 6,042 - 6,042 6,338 Total available annual


by amountGovernor-General Act 1974 - 394 394 394

Total special appropriations C - 394 394 394 Total appropriations excluding




218


1.3 BUDGET MEASURESThere are no Budget measures relating to the OOSGG in the 2012–13 Budget.

219





The OOSGG’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the OOSGG in achieving government outcomes.

Outcome 1: The performance of the Governor-General’s role is facilitated through the organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.

Outcome 1 StrategyThe OOSGG will seek to achieve its outcome by: providing a high standard of advice and service delivery to the Governor-

General and stakeholders

delivering effective governance and management arrangements in support of the official duties of the Governor-General

ensuring efficient and effective stewardship of the properties in accordance with heritage requirements and approved capital works and maintenance programs

educating and informing Australians about the role of the Governor-General

delivering efficient and effective administration of the Australian Honours and Awards system.

220


Outcome Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1, by its program.



expenses$'000 $'000

Program 1.1: Support the Governor-GeneralAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,897 1,976 Special appropriations 394 394

Departmental expensesDepartmental appropriation 1 11,449 11,249



Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 1,897 1,976 Special appropriations 394 394 Departmental appropriation 1 11,449 11,249




Outcome 1: The performance of the Governor-General’s role is facilitated through the organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards




221



Program 1.1: Support for the Governor-General and Official Functions

Program 1.1 ObjectivesThe program comprises two components: support of the Governor-General

administration of the Australian Honours and Awards system.

The objectives of this program are: to provide a high level of advice and administrative support to the

Governor-General in support of official duties

to effectively and efficiently manage and maintain the Governor-General’s official residences in Canberra and Sydney, including capital improvements, building and grounds maintenance, and caretaker responsibilities

to administer, on behalf of the Governor-General, the Australian Honours and Awards system, including all civilian honours, and awards for members of the Australian Defence Force

to undertake research and prepare nominations for consideration by the Council for the Order of Australia, the Australian Bravery Decorations Council and the National Emergency Medal Committee

to provide efficient and effective secretariat support to the Australian honours advisory bodies

to undertake the efficient procurement of Australian honours medals/insignia, warrants and investiture items.

222


Program 1.1 Expenses• There are no significant changes in the level of activity or funding

required for this program in 2012-13 or the forward years.


$'000 $'000 $'000 $'000 $'000Annual administered expenses:

Administered item 1,897 1,976 2,086 2,191 2,274 Special Appropriations:

Salary to the Governor General: Governor-General Act 1974 394 394 394 394 394

Total administered expenses 2,291 2,370 2,480 2,585 2,668

Annual departmental expenses:Program support 11,449 11,249 11,361 11,459 11,597 Expenses not requiring appropriation in

the Budget year 1 450 443 416 465 592 Total departmental expenses 11,899 11,692 11,777 11,924 12,189 Total program expenses 14,190 14,062 14,257 14,509 14,857


223


Program 1.1 ComponentsThere are two primary components under this program: Support of the Governor-General

Administration of the Australian Honours and Awards system.


$'000 $'000 $'000 $'000 $'0001.1.1 - Component 1: Support of the Governor-General

Annual administered expenses:Administered item 866 1,084 1,224 1,284 1,337

Special appropriations:Governor-General Act 1974 394 394 394 394 394

Annual departmental expenses:Program Support 6,297 6,187 6,249 6,302 6,378

Total component expenses 7,557 7,665 7,867 7,980 8,109 1.1.2 - Component 2: Administration of the Australian Honours and Awards System

Annual administered expenses:Administered item 1,031 892 862 907 937

Annual departmental expenses:Program support 5,152 5,062 5,112 5,157 5,219

Total component expenses 6,183 5,954 5,974 6,064 6,156 Expenses not requiring Appropriation in

the Budget year 1 450 443 416 465 592 Total program expenses 14,190 14,062 14,257 14,509 14,857


224



Component 1: Support of the Governor-General Executive support—includes providing advice to the Governor-General,

planning, implementing and managing Their Excellencies’ forward program of engagements, and liaising with representatives of governments, related authorities, and community groups.

Personal support—includes providing support for Their Excellencies and hospitality services for official functions.

Administrative services—includes providing governance advice and administrative services to OOSGG and managing the Governor-General’s official residences, including maintenance of property, equipment and grounds.

Component 2: Administration of the Australian Honours and Awards system Management of the Australian Honours and Awards system.

Providing secretariat support for the Council for the Order of Australia, the Australian Bravery Decorations Council and the new National Emergency Medal Committee.

Undertaking research and preparation of nominations for consideration by the Australian honours advisory bodies.

Contributing to the Australian Government’s promotional activities to increase awareness of the Australian Honours system.

225


Program 1.1 Key Performance IndicatorsComponent 1: Support of the Governor-General The Governor-General is satisfied with the level of advice and

administrative support provided that enables them to successfully perform official duties.

The Governor-General is satisfied with the management of the households.

The properties are managed in accordance with the requirements of the Environment Protection and Biodiversity Conservation Act 1999 and government policies relating to heritage properties, and with due consideration of advice provided by the Official Establishments Trust, and the National Capital Authority.

Component 2: Administration of the Australian Honours and Awards system The Order of Australia, the Australian Bravery Decorations and the

National Emergency Medal advisory bodies are satisfied with the quality of research and administrative support provided.

The medals and insignia meet design specifications.

90% of nominations for awards are researched and presented to the Council for the Order of Australia within 18 months of being received.

95% of nominations for bravery awards are presented to the Australian Bravery Decorations Council within 6 months of being researched.

95% of recommendations for long service and occupational awards are processed within 2 months of being received.

95% of recommendations for distinguished, conspicuous, gallantry and meritorious awards are processed and gazetted within 6 months of being received.

95% of valid nominations for the National Emergency Medal - Significant Service are presented to the National Emergency Medal Committee within 6 months of being researched.

90% of valid nominations received for the National Emergency Medal - Sustained Service are processed within 6 months of being received.

226





3.1.1 Movement of administered funds between yearsThe OOSGG does not have any movement of administered funds between years.

3.1.2 Special AccountsThe OOSGG does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe OOSGG does not have any Indigenous specific expenditure.

227



3.2.1 Differences in agency resourcing and financial statementsThe agency resourcing statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2012-13. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.1.1) shows only the operating appropriation provided in 2012-13.

3.2.2 Analysis of budgeted financial statements

DepartmentalIncome StatementThe OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2012-13 and the forward years.

In line with net cash appropriation arrangements that became effective from 2010-11, revenue from government has been reduced by an amount equal to depreciation and amortisation expense. Future asset replacements are funded through the departmental capital budget detailed in Table 3.2.5.

The comprehensive income statement sets out the expected operating results for the ordinary annual services provided by the OOSGG which are funded by departmental appropriations and other revenue.

Balance SheetThe movement in the OOSGG’s net asset position is principally as a result of the procurement of replacement infrastructure, plant and equipment assets owned by the OOSGG . The value of buildings in the balance sheet represents the value of work in progress of assets being developed under the Vice-Regal Heritage Property Master Plan.

The OOSGG’s primary liability is accrued employee entitlements.

AdministeredSchedule of budgeted income and expense administered on behalf of governmentThe OOSGG will receive administered appropriations of $2.4m in 2012–13 for the Governor-General’s salary, for support of the Australian Honours and Awards system and for administered depreciation.

Schedule of budgeted assets and liabilities administered on behalf of government

228


The value of land and buildings are expected to increase in 2012–13 and the forward years due to the completion of projects developed under the Vice-Regal Heritage Property Master Plan.

229




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 8,017 8,048 8,096 8,147 8,233 Suppliers 3,506 3,243 3,315 3,380 3,402 Depreciation and amortisation 376 401 366 397 554 Total expenses 11,899 11,692 11,777 11,924 12,189 LESS: OWN-SOURCE INCOMEOwn-source revenueRental income 14 14 14 14 14 Total own-source revenue 14 14 14 14 14 GainsSale of assets 36 4 12 30 - Other 38 38 38 38 38 Total gains 74 42 50 68 38 Total own-source income 88 56 64 82 52 Net cost of (contribution by)

services 11,811 11,636 11,713 11,842 12,137 Revenue from Government 11,435 11,235 11,347 11,445 11,583

Surplus (Deficit) attributable to the Australian Government (376) (401) (366) (397) (554)

Total comprehensive income (loss) attributable to the Australian Government (376) (401) (366) (397) (554)








230




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000




Land and buildings 546 545 1,185 2,284 - Property, plant and equipment 925 855 803 817 837 Intangibles 220 232 211 185 25 Other 15 15 15 15 15

Total non-financial assets 1,706 1,647 2,214 3,301 877 Total assets 6,788 6,019 5,929 6,817 4,393 LIABILITIESPayables

Suppliers 605 641 666 681 681 Total payables 605 641 666 681 681 Provisions

Employee provisions 2,357 2,588 2,829 3,091 3,091 Total provisions 2,357 2,588 2,829 3,091 3,091 Total liabilities 2,962 3,229 3,495 3,772 3,772 Net assets 3,826 2,790 2,434 3,045 621 EQUITY*

Contributed equity 2,197 1,562 1,572 2,580 710 Reserves 107 107 107 107 107 Retained surplus

(accumulated deficit) 1,522 1,121 755 358 (196) Total Equity 3,826 2,790 2,434 3,045 621


231




reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2012Balance carried forw ard from 1,522 107 2,197 3,826

previous period - - - - Adjusted opening balance 1,522 107 2,197 3,826 Comprehensive income



Distributions to ownersReturns on capital

Restructuring - - (1,800) (1,800) Contributions by owners

Appropriation (equity injection) - - 800 800 Appropriation (departmental)capital budget - - 365 365 Other - - - -

Sub-total transactions with owners - - (635) (635) Estimated closing balance



232




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Goods and services 14 14 14 14 14 Appropriations 14,713 11,933 12,003 11,640 11,583 Net GST received 448 328 306 263 -


Employees 7,804 7,817 7,855 7,885 8,233 Suppliers 3,297 3,169 3,252 3,327 3,364 Net GST paid 454 316 305 259 -


operating activities 3,620 973 911 446 - INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment 84 27 89 54 -

Total cash received 84 27 89 54 - Cash used

Purchase of property, plant and equipment 2,440 2,165 3,937 1,908 413

Total cash used 2,440 2,165 3,937 1,908 413 Net cash from (used by)

investing activities (2,356) (2,138) (3,848) (1,854) (413) FINANCING ACTIVITIESCash received

Contributed equity (1,264) 1,165 2,937 1,408 413 Total cash received (1,264) 1,165 2,937 1,408 413 Net cash from (used by)

financing activities (1,264) 1,165 2,937 1,408 413 Net increase (decrease)




233





Capital budget - Bill 1 (DCB) 449 365 369 408 413 Equity injections - Bill 2 1,070 - - - -

Total capital appropriations 1,519 365 369 408 413 Total new capital appropriations Provided for:

Purchase of non-f inancial assets 1,519 365 369 408 413 Total Items 1,519 365 369 408 413 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 1 1,970 800 2,568 1,000 -

Funded by capital appropriation - DCB 2 470 365 369 408 413 Funded internally from

departmental resources 3 - 1,000 1,000 500 - TOTAL 2,440 2,165 3,937 1,908 413 RECONCILIATION OF CASH


Total purchases 2,440 2,165 3,937 1,908 413 Total cash used to

acquire assets 2,440 2,165 3,937 1,908 413 1 Includes both current and prior appropriations2 Includes purchase from current and previous years' Departmental Capital Budgets (DCBs).3 Includes the following sources of funding: annual and prior year appropriations, donations and

contributions, gifts, internally developed assets, s31 relevant agency receipts, proceeds from the sale of assets.


234


Table 3.2.6: Statement of Asset Movements (2012-13)


equipment$'000 $'000 $'000 $'000

As at 1 July 2012Gross book value 546 1,305 702 2,553 Accumulated depreciation/amortisation

and impairment - 380 482 862 Opening net book balance 546 925 220 1,691 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity 1 1,799 - - 1,799 By purchase - appropriation ordinary

annual services 2 - 286 80 366 Total additions 1,799 286 80 2,165 Other movementsDepreciation/amortisation expense - 333 68 401 Disposals 3

From disposal of entities or (including restructuring) (1,800) 60 - (1,740)

Total other movements (1,800) 393 68 (1,339) As at 30 June 2013Gross book value 545 1,531 782 2,858 Accumulated depreciation/amortisation

and impairment - 676 550 1,226 Closing net book balance 545 855 232 1,632

Asset Category

1 ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2012-13.


3 Proceeds may be returned to the OPA.Prepared on Australian Accounting Standards basis.

235



Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 1,031 892 862 907 937 Personal benefits 394 394 394 394 394 Depreciation and amortisation 866 1,084 1,224 1,284 1,337


LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Sale of goods and rendering of services 20 20 20 20 20

Total non-taxation revenue 20 20 20 20 20 Total own-source revenues

administered on behalf of Government 20 20 20 20 20

Total own-sourced incomeadministered on behalf ofGovernment 20 20 20 20 20




236


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)


2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Financial assetsCash and cash equivalents 1 1 1 1 1 Taxation receivables 24 24 24 24 24

Total financial assets 25 25 25 25 25 Non-financial assets

Land and buildings 85,765 86,572 88,373 87,596 88,653 Property, plant and equipment 1,716 1,705 1,687 1,660 1,550 Inventories 1,372 1,372 1,372 1,372 1,372

Total non-financial assets 88,853 89,649 91,432 90,628 91,575 Total assets administered



Suppliers 205 205 205 205 205 Other 5 5 5 5 5

Total payables 210 210 210 210 210 Total liabilities administered

on behalf of Government 210 210 210 210 210 Prepared on Australian Accounting Standards basis.

237




2011-12 2012-13 2013-14 2014-15 2015-16$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 20 20 20 20 20

Total cash received 20 20 20 20 20 Cash used

Personal benefits 394 394 394 394 394 Suppliers 1,031 892 862 907 937



cash heldCash and cash equivalents at

beginning of reporting period 1 1 1 1 1 Cash from Off icial Public Account for:

- Appropriations 1,425 1,286 1,256 1,301 1,331 1,426 1,287 1,257 1,302 1,332

Cash to Official Public Account for:- Appropriations (20) (20) (20) (20) (20)

(20) (20) (20) (20) (20) Cash and cash equivalents at endof reporting period 1 1 1 1 1


238


Table 3.2.10: Schedule of Administered Capital BudgetEstimated Budget Forw ard Forw ard Forw ard


$'000 $'000 $'000 $'000 $'000PURCHASE OF NON-FINANCIAL

ASSETSFunded internally from

departmental resources1 2,020 1,880 3,007 480 2,284 TOTAL 2,020 1,880 3,007 480 2,284 RECONCILIATION OF CASH


Total purchases 2,020 1,880 3,007 480 2,284 less s32 / restructuring 2,020 1,880 3,007 480 2,284 Total cash used to

acquire assets - - - - - 1 Includes the following sources of funding: annual and prior year appropriations, donations and



239


Table 3.2.11: Schedule of Asset Movements — Administered Asset Category

Land Buildings Other Totalproperty,plant and

equipment$'000 $'000 $'000 $'000

As at 1 July 2012Gross book value 62,000 25,827 1,888 89,715 Accumulated depreciation/amortisation and

impairmentOpening net book balance 62,000 23,765 1,716 87,481 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assets(including restructuring) - 1,800 80 1,880

Total additions - 1,800 80 1,880 Other movementsDepreciation/amortisation expense - 993 91 1,084 As at 30 June 2013Gross book value 62,000 27,627 1,968 91,595 Accumulated depreciation/amortisation and

impairment - 3,055 263 3,318 Closing net book balance 62,000 24,572 1,705 88,277

- 2,062 172 2,234


240

Glossary

241

Glossary

GLOSSARY

Accumulated depreciation

The aggregate depreciation recorded for a particular depreciating asset.

Actual available appropriation

The actual available appropriation indicates the total appropriations available to the agency for 2011–12 as at the 2012–13 Budget. It includes all appropriations made available to the agency in the year (+/– section 32 transfers, formal reductions, advance to the Finance Minister and movements of funds). It is the same as the comparator figure included in the Appropriation Bills and, as such, provides a comparison with the appropriation proposed for the Budget year.

Additional estimates Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Appropriation Estimates Acts.

Administered item Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency and any unspent appropriation is returned to the CRF at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right.

Agency Generic term for Australian Government General Government Sector entities, including those governed by the FMA Act or CAC Act and the High Court of Australia.

Appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under Special Appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

243

Glossary

Appropriation Acts No 1 & 3

These appropriation Acts provide for matters that are considered to be the ordinary annual services of the government. Bills proposing appropriations for ordinary annual services cannot be amended by the Senate under section 53 of the Constitution.

Budget Paper 1 (BP1) Budget Strategy and Outlook. Provides information and analysis on whole-of-government expenditure and revenue.

Budget Paper 2 (BP2) Budget Measures. Provides a description of each budget measure by portfolio.

Budget Paper 3 (BP3) Australia‘s Federal Relations. Provides information and analysis on federal funding provided to the states and territories.

Budget Paper 4 (BP4) Agency Resourcing. Details total resourcing available to agencies.

Capital expenditure Expenditure by an agency on capital projects; for example, purchasing a building.

Consolidated Revenue Fund

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

Departmental capital budget (DCB)

Net cash appropriation arrangements involve the cessation of funding for depreciation, amortisation and makegood expenses. Funding for these expenses has been replaced with a collection development and acquisition budget (CDAB) for designated collection institutions (DCIs), and departmental capital budgets (DCBs) for FMA Act agencies.

Departmental item Resources (assets, liabilities, revenues and expenses) that agency chief executive officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

244

Glossary

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

Entity A department or agency under the Financial Management and Accountability Act 1997 (FMA Act), a company or authority under the Commonwealth Authorities and Companies Act 1997 (CAC Act) or any other Commonwealth statutory authority.

Estimated actual expenses

Details of the current year‘s estimated final figures as included in the Budget documentation. As the Budget is released in May each year, but the financial year does not close off until 30 June, the current year numbers that are used for comparison with Budget amounts can only be estimates.

Expenditure Spending money from the Consolidated Revenue Fund or a notional payment to an FMA agency.

Expense Decreases in economic benefits in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

Expenses not requiring appropriation in the Budget year

Expenses not involving a cash flow impact are not included within the calculation of an appropriation. An example of such an event is goods or services received free of charge that are then expensed; for example, ANAO audit services. The ANAO does not charge for audit services; however, the expense must be recognised. Similarly, bad debts are recognised as an expense but are not recognised for the purpose of calculating appropriation amounts to be sought from parliament.

Financial Management and Accountability Act 1997 (FMA Act)

The FMA Act sets out the financial management, accountability and audit obligations of agencies (including departments) that are financially part of the Commonwealth (and form part of the General Government Sector).

245

Glossary

Forward estimates period

The three years following the Budget year. For example if 2012–13 is the Budget year, 2013–14 is forward year 1, 2014–15 is forward year 2 and 2015–16 is forward year 3. This period does not include the current or Budget year.

Funds Money that has been appropriated but not drawn from the Consolidated Revenue Fund.

Income Total value of resources earned or received to cover the production of goods and services.

Make good Make good is the cost of dismantling and removing an item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. A common example of make good in the public sector is the restoration of office premises at the end of a lease period.

Measure A new policy or savings decision of the government with financial impacts on the government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth. Such proposals are normally made in the context of the annual Budget, and are typically published in Budget Paper No. 2, in the Mid-Year Economic and Fiscal Outlook (MYEFO).

Mid-Year Economic and Fiscal Outlook (MYEFO)

The MYEFO provides an update of the government’s budget estimates by examining expenses and revenues in the year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the government‘s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

246

Glossary

‘Movement of funds’ between years

A ‘movement of funds’ process is carried out twice each year in relation to unexpensed administered operating appropriations. This involves portfolio Ministers submitting requests to the Finance Minister advising of timing changes to funding requirements. If agreed by the Finance Minister, there will be an increase in the amount appropriated in later year(s).

Net cash framework The net cash framework, implemented from the 2010-11 Budget, replaces funding for depreciation and amortisation expenses with a departmental capital budget (DCB) and the funding of make good expenses will cease to be paid in advance.The net cash framework applies to general government sector agencies that receive funding from annual appropriations directly or via a special account, with the exception of CAC Act bodies and the Department of Defence and the Defence Materiel Organisation.

Non-operating Sometimes called ‘capital’ costs. Official Public Account (OPA)

The OPA is the Australian Government‘s central bank account held within the Reserve Bank of Australia. The OPA reflects the operations of the Consolidated Revenue Fund.

Operating Normally related to ongoing, or recurring expenses, such as paying salaries or making program payments.

Operating result Equals income less expenses.Outcome An outcome is the intended result, consequence

or impact of government actions on the Australian community.

Portfolio Budget Statements

Budget related paper detailing budget initiatives and explanations of appropriations specified by outcome and program by each agency within a portfolio.

Program Activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

247

Glossary

Program support The agency running costs allocated to a program. This is funded as part of the agency‘s departmental appropriations.

Special account Balances existing within the Consolidated Revenue Fund (CRF) that are supported by standing appropriations (Financial Management and Accountability Act 1997, ss. 20 and 21). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (s. 20 of the FMA Act) or through an Act of Parliament (referred to in s. 21 of the FMA Act).

Special appropriations (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.Standing appropriations are a subcategory consisting of ongoing special appropriations—the amount appropriated will depend on circumstances specified in the legislation.

248

Acronym

FREQUENTLY USED ACRONYMS

AAO Administrative Arrangement Order

AAS Australian Accounting Standards

ACB Administered Capital Budget

AEIFRS Australian Equivalent to International Financial Reporting Standards

AGE Australian Government Employee

ANAO Australian National Audit Office

APS Australian Public Service

APSC Australian Public Service Commission

CDAB Collection Development and Acquisition Budget

CDB Collection Development Budget

CHOGM Commonwealth Heads of Government Meeting

COAG Council of Australian Governments

DCB Departmental Capital Budget

DRALGAS Department of Regional Australia, Local Government, Arts and Sport

FMA Financial Management and Accountability

FOI Freedom of Information

G20 Group of 20 Meeting

GFS Government Finance Statistics

MOU Memorandum of Understanding

OCO Office of the Commonwealth Ombudsman

OIGIS Office of the Inspector-General of Intelligence and Security

249

Acronym

ONA Office of National Assessment

OOSGG Office of the Official Secretary to the Governor-General

OPA Official Public Account

OTM Other Trust Monies

PMC Department of Prime Minister and Cabinet

SOETM Services for Other Entities and Trust Monies special accounts

SOG Services for Other Government and non-agency bodies accounts

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