AUSTRALIAN INSTITUTE OF CRIMINOLOGY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Australian Institute of Criminology (AIC) is Australia’s leading national research and knowledge centre on crime and justice.

The AIC undertakes and communicates evidence-based research to inform policy and practice in the law enforcement and justice sectors through: • monitoring trends in crime and the criminal justice system • building knowledge of offending and victimisation • identifying emerging or changed criminal activity • building an evidence base for an effective criminal justice system and crime prevention.

Much of the AIC’s work falls under the Australian Government’s strategic research priorities, in particular the priority themes of ‘living in a changing environment’, ‘promoting population health and wellbeing’ and ‘securing Australia’s place in a changing world’.

The AIC’s research programme includes specialised national monitoring programmes on key areas of crime and justice, providing vital information that assists policy makers and practitioners to manage, evaluate and respond effectively and efficiently to crime and justice problems. These unique datasets are used to monitor trends in offending, the changing profile of offenders and victims, and the circumstances of the crimes. The national monitoring programmes and regular reports produced by the AIC include: • human trafficking and slavery • deaths in custody • fraud against the Commonwealth • drug use and the criminal activities of police detainees • homicide.

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The AIC also undertakes a range of research projects each year that investigate other areas of concern to policy makers and practitioners within the major theme areas of: • transnational and organised crime (including economic and high-tech crime, cybercrime and human trafficking) • crime prevention (including community capacity building) • criminal justice responses (with a focus on policing, courts and corrections systems) • substance abuse and crime • violent crime • vulnerable communities (including crime in Indigenous and culturally and linguistically diverse communities, youth justice and crimes against the elderly).

The AIC works cooperatively with, and also undertakes research for, other Commonwealth, state and territory agencies. State and territory agencies provide substantial in-kind support to the research undertaken by the AIC.

The AIC provides access to information for the AIC’s broad range of stakeholders. Through its publication programme, the AIC’s website, social media, library and information services, and annual series of national conferences and roundtables, the AIC disseminates research findings and information about the nature and extent of crime, emerging trends, and effective responses to promote justice and reduce crime.

The Criminology Research Grants programme is managed by the AIC, with funding contributed by the Commonwealth and state and territory governments. The Director of the AIC approves a series of research grants each year, taking into account the recommendations of the Criminology Research Advisory Council. The programme funds research that has relevance to jurisdictional policy in the areas of law, police, judiciary, corrections, mental health, social welfare, education and related fields.

The AIC also manages the Australian Crime and Violence Prevention Awards, which are designed to reward good practice in the prevention or reduction of violence and other types of crime in Australia. The awards also encourage public initiatives at the grassroots level, and assist governments to identify and develop practical projects that will reduce violence and other types of crime in the community.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources.

Table 1.1: Entity resource statement—Budget estimates for 2015–16 as at Budget May 2015 Estimate of Actual prior year available amounts Proposed Total appropriation available in at Budget estimate 2014–15 2015–16 2015–16 2015–16 $’000 $’000 $’000 $’000 ORDINARY ANNUAL SERVICES(a) Departmental appropriation Departmental appropriation(b) 5,348 – 5,290 5,290 Total ordinary annual services 5,348 – 5,290 5,290 Total available annual appropriations 5,348 – 5,290 5,290 SPECIAL ACCOUNTS Opening balance(c) 4,376 – 3,386 3,386 Appropriation receipts(d) 3,023 – 3,114 3,114 Total special accounts 7,399 – 6,500 6,500 Total resourcing 12,747 – 11,790 11,790 Less appropriations drawn from annual or special appropriations above and credited to special accounts 258 – 258 258 Total net resourcing for entity 12,489 – 11,532 11,532 All figures are GST exclusive. (a) Appropriation Bill (No. 1) 2015–16. (b) Includes an amount of $0.023m in 2015–16 for the departmental capital budget (see Table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. (c) Estimated opening balance for special accounts (less ‘special public money’ held in an account such as a Services for Other Entities and Trust Moneys Special Account). For further information on special accounts, see Table 3.1.2. (d) Appropriation receipts drawn from annual departmental appropriation above and credited to special accounts, and revenue from independent sources.

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1.3 BUDGET MEASURES

Budget measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO) and other measures not previously reported in a portfolio statement are summarised in Part 2 of Table 1.2.

Table 1.2: Entity 2015–16 Budget measures Part 1: Measures announced since the 2014–15 MYEFO The AIC has no new post-MYEFO measures.

Part 2: MYEFO measures and other measures not previously reported in a portfolio statement 2014–15 2015–16 2016–17 2017–18 2018–19 Programme $’000 $’000 $’000 $’000 $’000 Measures Communications and Public Affairs Functions—targeted 1.1 savings Departmental expenses (7) (14) (14) (14) – Total (7) (14) (14) (14) – Prepared on a Government Finance Statistics (fiscal) basis.

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 programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes that contribute to government outcomes over the budget and forward years.

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

Outcome 1: Informed crime and justice policy and practice in Australia by undertaking, funding and disseminating policy-relevant research of national significance; and through the generation of a crime and justice evidence base and national knowledge centre

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Outcome 1 strategy The main focus of the AIC is on the conduct of research that is relevant to crime and justice policy and practice. As a national knowledge centre, the AIC disseminates both its own research and other national and international information relevant to crime and justice. The AIC also funds criminological research through the Criminology Research Grants programme.

Outcomes are achieved by: • undertaking impartial and contemporary policy-relevant research • keeping the minister fully informed of the AIC’s outcomes and publications • working cooperatively with the Attorney-General’s Department, portfolio entities, state and territory criminal justice agencies and other stakeholders • producing and disseminating crime and justice research and other information to policy makers, practitioners, the academic community and the general public across Australia and internationally • maintaining and producing research information of value to key stakeholders from ongoing monitoring programmes and other research data collections • determining priorities and making grants under the Criminology Research Grants programme in consultation with Australian governments.

Outcome 1 expense statement Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted expenses for Outcome 1 2014–15 Outcome 1: Informed crime and justice policy and practice in Australia Estimated 2015–16 by undertaking, funding and disseminating policy-relevant research of actual Estimated national significance; and through the generation of a crime and expenses expenses justice evidence base and national knowledge centre $’000 $’000 Programme 1.1: Australian Institute of Criminology Departmental expenses Ordinary annual services (Appropriation Bill No. 1) 5,324 5,267 Special accounts 3,728 3,094 Expenses not requiring appropriation in the budget year(a) 105 105 Total expenses for Outcome 1 9,157 8,466

2014–15 2015–16 Average staffing level (number) 50 47 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. (a) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses.

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Contributions to Outcome 1

Programme 1.1: Australian Institute of Criminology

Programme 1.1 objective The primary objective of programme 1.1 is to inform policy and practice that seeks to reduce crime and promote justice through the conduct of research and the dissemination of research findings and related information. This also includes the support of research that is relevant to current and future public policy issues and the funding of quality criminological research through an annual Criminology Research Grants programme. The secondary objective is to maintain a comprehensive and focused collection of criminal justice–related material in Australia and to ensure that the AIC’s researchers and stakeholders have access to the most up-to-date and relevant information through an active information dissemination programme.

Programme 1.1 expenses Budget expenditure shows a reduction from 2014–15 to 2015–16 and across the forward years as a result of current and prior year savings measures and the efficiency dividend. In addition, the AIC currently manages the National Drug and Law Enforcement Fund, which provides grants on behalf of the Department of Health. The current funding for this programme ceases in 2014–15, resulting in reduced grant expenditure in 2015–16.

2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 Special account expenses Criminology Research Special Account 3,728 3,094 3,228 3,331 3,331 Annual departmental expenses Departmental items 5,324 5,267 5,238 5,283 5,335 Expenses not requiring appropriation in the budget year(a) 105 105 105 105 105 Total programme expenses 9,157 8,466 8,571 8,719 8,771 (a) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses.

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Programme 1.1 deliverables Deliverables for this programme include: • undertaking impartial and policy-relevant research of the highest standard on crime and criminal justice • working cooperatively with the Attorney-General’s Department, portfolio and other federal entities, and state and territory government agencies in the AIC’s role as the Australian Government’s national research centre on crime and justice • administering an effective and efficient annual Criminology Research Grants programme that results in policy-relevant research • actively disseminating research findings to policy makers, practitioners and the general public across Australia and internationally in a timely manner.

Programme 1.1 key performance indicators • A range of timely and policy-relevant research projects are undertaken that are valued by stakeholders. • The Attorney-General’s Department and key stakeholders are satisfied with the AIC’s responsiveness to requests for assistance in priority areas. • Research activities under the national research priorities are reported in the annual report. • Criminology Research Grants programme funds are used to support research that is relevant to current and future public policy issues and that produces research reports of value to government and other stakeholders. • 100% of trends and issues papers and research and public policy papers are peer reviewed. This ensures the quality of the research outputs by the AIC. • At least 23 peer-reviewed publications and at least 40 other publications are produced annually. • All publications are placed on the AIC’s website within 24 hours of release and 90% of routine alerting to subscribers and listservs is complete within two days of publication release. • At least 10 conferences and other events are held each year that are valued by stakeholders • Gov 2.0 measures are implemented.

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Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, and special accounts.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years The AIC has no administered funds.

3.1.2 Special accounts Special 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 section 78 of the Public Governance, Performance and Accountability Act 2013 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the AIC.

Table 3.1.2: Estimates of special account flows and balances Opening Closing balance Receipts Payments balance Outcome $’000 $’000 $’000 $’000 Criminology Research Special Account (D)(a) 1 2015–16 3,386 3,114 3,405 3,095 2014–15 4,376 3,023 4,013 3,386 Total special accounts 2015–16 Budget estimate 3,386 3,114 3,405 3,095 Total special accounts 2014–15 estimated actual 4,376 3,023 4,013 3,386 (D) = Departmental. (a) The Criminology Research Special Account is established under section 46 of the Criminology Research Act 1971 (CR Act) for the purposes of section 80 of the Public Governance, Performance and Accountability Act 2013. Funds received into the special account include all funds paid to the AIC in relation to performing any of its functions, or exercising any of its powers, under the CR Act. This also includes amounts appropriated for the purposes of the account and amounts paid by state or territory government agencies to the AIC. The AIC can expend funds from the special account in relation to its functions as set out in section 6 of the CR Act, including the payment of grants, remuneration and allowances and costs of administering the special account.

3.1.3 Australian Government Indigenous expenditure The AIC has no Indigenous-specific expenses.

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in entity resourcing and financial statements The AIC has total resources available of $11.532m for the 2015–16 budget year (see Table 1.1). This amount is significantly more than the revenue shown in Table 3.2.1 as a result of the AIC’s special account opening balance of $3.386m brought forward from 2014–15. See section 3.1.2 for more information on the special account.

3.2.2 Analysis of budgeted financial statements The AIC’s appropriation income has reduced from that published in the 2014–15 Portfolio Budget Statements as a result of the ongoing and additional savings and efficiency measures. Additional savings since the last budget are detailed in section 1.3 (see Table 1.2). The overall impact of these savings and efficiency measures on the AIC’s appropriation income is a year-on-year decrease in funding.

The AIC’s own-source revenue is budgeted to decrease from the prior year by $0.635m to $2.856m, mainly due to the cessation of funding for the National Drug and Law Enforcement Fund, which provides grants on behalf of the Department of Health. The current funding for this programme ceases in 2014–15, resulting in reduced grant expenditure in 2015–16. Revenue for research contracts provides an offset to this decrease in expenditure.

The AIC’s expenses have decreased from the prior year forecast by $0.691m as a direct consequence of the decrease in income. Grant expenditure decreases by $0.800m, in line with the end of the National Drug and Law Enforcement Fund grant programme.

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3.2.3 Budgeted financial statements tables Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 5,146 5,283 5,412 5,537 5,537 Suppliers 2,606 2,578 2,554 2,627 2,679 Grants 1,300 500 500 450 450 Depreciation and amortisation 105 105 105 105 105 Total expenses 9,157 8,466 8,571 8,719 8,771 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 2,211 2,406 2,659 2,941 2,941 Royalties 50 50 50 50 50 Other 1,230 400 400 300 300 Total own-source revenue 3,491 2,856 3,109 3,291 3,291 Gains Other 37 38 39 40 40 Total gains 37 38 39 40 40 Total own-source income 3,528 2,894 3,148 3,331 3,331 Net cost of (contribution by) services 5,629 5,572 5,423 5,388 5,440 Revenue from government 5,324 5,267 5,238 5,283 5,335 Surplus (deficit) attributable to the Australian Government (305) (305) (185) (105) (105) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (305) (305) (185) (105) (105) Total comprehensive income (loss) attributable to the Australian Government (305) (305) (185) (105) (105)

Note: Impact of net cash appropriation arrangements 2014–15 2015–16 2016–17 2017–18 2018–19 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations (200) (200) (80) – – Less depreciation/amortisation expenses previously funded through revenue appropriations 105 105 105 105 105 Total comprehensive income (loss) as per the statement of comprehensive income (305) (305) (185) (105) (105) Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 3,386 3,096 2,908 2,826 2,826 Trade and other receivables 1,254 1,254 1,254 1,254 1,254 Total financial assets 4,640 4,350 4,162 4,080 4,080 Non-financial assets Property, plant and equipment 385 385 385 385 303 Other non-financial assets 116 116 116 116 116 Total non-financial assets 501 501 501 501 419 Total assets 5,141 4,851 4,663 4,581 4,499 LIABILITIES Payables Suppliers 777 769 743 743 743 Other payables 1,421 1,421 1,421 1,421 1,421 Total payables 2,198 2,190 2,164 2,164 2,164 Provisions Employee provisions 1,128 1,128 1,128 1,128 1,128 Total provisions 1,128 1,128 1,128 1,128 1,128 Total liabilities 3,326 3,318 3,292 3,292 3,292 Net assets 1,815 1,533 1,371 1,289 1,207 EQUITY Parent entity interest Contributed equity 1,134 1,157 1,180 1,203 1,226 Reserves 782 782 782 782 782 Retained surplus (accumulated deficit) (101) (406) (591) (696) (801) Total parent entity interest 1,815 1,533 1,371 1,289 1,207 Total equity 1,815 1,533 1,371 1,289 1,207 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 2015–16) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2015 Balance carried forward from previous period (101) 782 1,134 1,815 Adjustment for changes in accounting policies – – – – Adjusted opening balance (101) 782 1,134 1,815 Comprehensive income Surplus (deficit) for the period (305) – – (305) Total comprehensive income (305) – – (305) Transactions with owners Contributions by owners Departmental capital budget – – 23 23 Sub-total transactions with owners – – 23 23 Estimated closing balance as at 30 June 2016 (406) 782 1,157 1,533 Closing balance attributable to the Australian Government (406) 782 1,157 1,533 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) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 5,324 5,267 5,238 5,283 5,335 Sale of goods and rendering of services 1,485 2,406 2,659 2,941 2,941 Other 1,280 450 450 350 350 Total cash received 8,089 8,123 8,347 8,574 8,626 Cash used Employees 5,146 5,283 5,412 5,537 5,537 Suppliers 2,561 2,548 2,541 2,587 2,639 Other 1,300 500 500 450 450 Total cash used 9,007 8,331 8,453 8,574 8,626 Net cash from (used by) operating activities (918) (208) (106) – – INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 96 106 106 105 23 Total cash used 96 106 106 105 23 Net cash from (used by) investing activities (96) (106) (106) (105) (23) FINANCING ACTIVITIES Cash received Contributed equity 24 23 23 23 23 Total cash received 24 23 23 23 23 Net cash from (used by) financing activities 24 23 23 23 23 Net increase (decrease) in cash held (990) (291) (189) (82) – Cash and cash equivalents at the beginning of the reporting period 4,376 3,386 3,096 2,908 2,826 Cash and cash equivalents at the end of the reporting period 3,386 3,095 2,907 2,826 2,826 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budget—Bill 1 (DCB) 24 23 23 23 23 Total new capital appropriations 24 23 23 23 23 Provided for: Purchase of non-financial assets 24 23 23 23 23 Total items 24 23 23 23 23 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation—DCB(a) 24 23 23 23 23 Funded internally from departmental resources(b) 72 83 83 82 – Total purchases of non-financial assets 96 106 106 105 23 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 96 106 106 105 23 Total cash used to acquire assets 96 106 106 105 23 Prepared on Australian Accounting Standards basis. DCB = departmental capital budget. (a) Does not include annual finance lease costs. Includes purchases from current and previous years’ DCBs. (b) Includes funding from current Bill 1 appropriations (excluding amounts from the DCB), section 74 retained revenue receipts and proceeds from the sale of assets.

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Table 3.2.6: Statement of asset movements (budget year 2015–16) Property, Computer plant & software & equipment intangibles Total $’000 $’000 $’000 As at 1 July 2015 Gross book value 1,896 62 1,958 Accumulated depreciation/amortisation and impairment (1,511) (62) (1,573) Opening net book balance 385 – 385 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation ordinary annual services(a) 13 10 23 By purchase—other 82 – 82 Total additions 95 10 105 Other movements Depreciation/amortisation expense 95 10 105 Total other movements 95 10 105 As at 30 June 2016 Gross book value 1,991 72 2,063 Accumulated depreciation/amortisation and impairment (1,606) (72) (1,678) Closing net book balance 385 – 385 Prepared on Australian Accounting Standards basis. (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2015–16 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

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3.2.4 Notes to the financial statements Basis of accounting The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Revenue from government Appropriations for departmental items are recognised as revenue.

Goods and services All revenues from the sale of goods and services are recognised upon delivery of goods to customers. Revenue from the rendering of a service is recognised by reference to the stage of completion of the contract to provide the service.

Employee expenses Employee expenses consist of salaries, leave entitlements, redundancy expenses, superannuation and workers’ compensation insurance.

Suppliers Supplier expenses consist of consultant and contractor costs, information technology, property operating expenses, travel expenses and administrative costs.

Cash Cash includes notes and coins held and any deposits held with a bank.

Non-financial assets Purchase of infrastructure, plant and equipment is recognised initially at cost in the statement of financial position.

Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives. The straight-line method of depreciation is used except for the library collection, which is depreciated on a reducing balance basis. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current and/or future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

Employee provisions Employee provisions consist of annual leave, long service leave and accrued wages and superannuation.

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