Portfolio Budget Statements - CRIMTRAC AGENCY

CRIMTRAC AGENCY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

CrimTrac, in partnership with all Australian police agencies, continues to work collaboratively to provide essential information services to police and law enforcement agencies for a safer community and safer Australia.

CrimTrac’s information-sharing services ensure that vital information is shared across the nine police jurisdictions, providing a national view of policing and law enforcement information. CrimTrac’s information-sharing capabilities are specifically designed to equip police with the information they need to make decisions, assist in crime prevention and investigation, and improve the safety of the policing community. Through uniting common information services and developing innovative capabilities and enhancements to national police data holdings, CrimTrac is directly contributing to the effectiveness and efficiency of policing and law enforcement in Australia.

CrimTrac is committed to preserving the integrity of its information holdings and complies with all relevant laws and policies to prevent misuse of personal information.

CrimTrac will continue to enhance Australian policing through the provision of high-quality information services that meet the needs of the Australian policing community.

CrimTrac will continue to deliver information-sharing capabilities in line with the long-term strategic vision of the agency, which is developed through close consultation with all jurisdictions.

In 2015–16, CrimTrac will: • enhance the national information and communications technology (ICT) environment for policing and law enforcement in alignment with national security standards • continue to operate, maintain and enhance existing systems and services, including the following national systems and services: – automated fingerprint identification system – criminal investigation DNA database – child protection services – police reference systems – police checking service – national firearms services

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– national ballistics identification – missing person and victim system – cybercrime online reporting network • implement new information-sharing capabilities for policing and law enforcement, including a national DNA investigative capability • continue to work collaboratively with relevant Commonwealth, state and territory agencies to improve the collection and sharing of information nationally • implement a National Domestic Violence Order Information Sharing System prototype • continue to build strong relationships with our partners to progress the capability of law enforcement in Australia • provide support to facilitate the international exchange of information • implement national information exchange standards and enhance interoperability of policing information • evaluate emerging national and international information-sharing opportunities for their suitability to enhance: – child protection capabilities – biometrics capabilities – portability of policing information – exchange of criminal history and policing information with international partners.

CrimTrac’s strategy recognises: • that CrimTrac is responsible for providing national information-sharing solutions for our partners • the importance of ensuring appropriate workforce skills, experience and knowledge to deliver information-sharing solutions for our partners • the need to achieve outcomes for Australian policing and law enforcement through co-planning, co-investing and co-delivering with our partners • that innovation is essential to CrimTrac’s continued success. Through investing in and leveraging innovation, CrimTrac can contribute to increasing the efficiency and effectiveness of the work of policing and law enforcement nationally.

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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 SPECIAL ACCOUNTS Opening balance(a) 116,391 111,730 – 111,730 Non-appropriation receipts to special accounts – – 79,497 79,497 Total special accounts 116,391 111,730 79,497 191,227 Total net resourcing for entity 116,391 111,730 79,497 191,227 (a) Estimated opening balance for special accounts. For further information on special accounts, see Table 3.1.2.

1.3 BUDGET MEASURES

Budget measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO) relating to CrimTrac are detailed in Budget Paper No. 2 and are summarised in Part 1 of Table 1.2.

Table 1.2: Entity 2015–16 Budget measures Part 1: Measures announced since the 2014–15 MYEFO 2014–15 2015–16 2016–17 2017–18 2018–19 Programme $’000 $’000 $’000 $’000 $’000 Expense measures Biometrics Identification Services 1.1 Departmental expenses – 749 – – – Safeguarding Law Enforcement Integrity—continuation 1.1 Departmental expenses – (75) (75) (75) (75) Total – 674 (75) (75) (75) Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO measures and other measures not previously reported in a portfolio statement CrimTrac has no MYEFO measures or other measures not previously reported in a portfolio statement.

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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.

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

Outcome 1: Access to information that supports law enforcement agencies through collaborative national information systems and services

Outcome 1 strategy CrimTrac will take a leadership role in generating national approaches to information solutions for policing, law enforcement and national security. Towards achievement of the outcome, CrimTrac will: • enhance the national ICT environment for policing and law enforcement in alignment with national security standards • continue to operate, maintain and enhance existing systems and services, including the following national systems and services: – automated fingerprint identification system – criminal investigation DNA database – child protection services – police reference systems – police checking service – national firearms services – national ballistics identification – missing person and victim system – cybercrime online reporting network • implement new information-sharing capabilities for policing and law enforcement, including a national DNA investigative capability • continue to work collaboratively with relevant Commonwealth, state and territory agencies to improve the collection and sharing of information nationally • implement a National Domestic Violence Order Information Sharing System prototype.

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In addition to the above, CrimTrac will: • establish consensus on new services CrimTrac will deliver, evaluate existing systems for improvement, and set the priority of work • realise national benefits through the establishment of joint working groups to manage investment into CrimTrac projects, and guide the scoping and standards of initiatives • identify, assess and prioritise capability development opportunities that support CrimTrac’s partners and the national strategic intent • support the international exchange of policing and law enforcement information.

CrimTrac recognises the importance of its partnerships and the necessity to uphold a collaborative approach in delivering its services. CrimTrac acknowledges the contribution of its partners in: • providing accurate, consistent and complete policing information as supported by the inter-governmental agreement and the memorandum of understanding • providing commitment to the national strategic intent for information sharing.

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 Estimated 2015–16 Outcome 1: Access to information that supports law enforcement actual Estimated agencies through collaborative national information systems and expenses expenses services $’000 $’000 Programme 1.1: National law enforcement information systems and services Departmental expenses Special accounts 76,531 73,121 Total expenses for Outcome 1 76,531 73,121

2014–15 2015–16 Average staffing level (number) 229 229

Contributions to Outcome 1

Programme 1.1: National law enforcement information systems and services

Programme 1.1 objective CrimTrac’s broad objective is to enhance Australian policing through the provision of high-quality information services that meet the needs of the Australian policing community.

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Programme 1.1 expenses 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 National Policing Information Systems and Services Special Account 76,531 73,121 73,699 74,913 74,887 Total programme expenses 76,531 73,121 73,699 74,913 74,887

Programme 1.1 deliverables To achieve the programme objective, CrimTrac will: • operate, maintain and enhance existing national critical policing information infrastructure, systems and services, including the following national systems and services: – automated fingerprint identification system – criminal investigation DNA database – child protection services – police reference systems – police checking service – national firearms services – national ballistics identification – missing person and victim system – cybercrime online reporting network. In addition to the above, CrimTrac will: • implement new information-sharing capabilities for policing and law enforcement, including a national DNA investigative capability • implement a National Domestic Violence Order Information Sharing System prototype • continue to strengthen internal capacity and capability • identify, assess and prioritise capability development opportunities that support CrimTrac’s partners and the national strategic intent, including: – firearms and ballistics information – cybercrime reporting – child protection

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– biometrics • support the international exchange of policing and law enforcement information.

Programme 1.1 key performance indicators CrimTrac’s key performance indicators focus on the provision of high-quality information services that meet the needs of the Australian policing community.

2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward Key performance indicators actual Budget estimate estimate estimate Availability of fingerprint system (excluding scheduled outages) 99.0% 99.4% 99.4% 99.4% 99.5% Availability of police reference and child offender systems (excluding scheduled outages) 99.5% 99.5% 99.5% 99.5% 99.5% Availability of police checking, vehicles of interest, DNA database, names index and firearms licence systems (excluding scheduled outages) 99.0% 99.0% 99.0% 99.0% 99.0% Percentage of criminal history checks completed within 10 working days 95.0% 95.0% 95.0% 95.0% 95.0% Percentage of urgent criminal history checks completed within five working days 95.0% 95.0% 95.0% 95.0% 95.0%

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 programme expenses and special accounts.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years CrimTrac 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 CrimTrac.

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Table 3.1.2: Estimates of special account flows and balances Opening Closing balance Receipts Payments balance Outcome $’000 $’000 $’000 $’000 National Policing Information Systems and Services (D) 1 2015–16 111,730 79,497 80,712 110,515 2014–15 116,391 80,502 85,163 111,730 Total special accounts 2015–16 Budget estimate 111,730 79,497 80,712 110,515 Total special accounts 2014–15 estimated actual 116,391 80,502 85,163 111,730 (D) = Departmental.

3.1.3 Australian Government Indigenous expenditure CrimTrac has no Indigenous-specific expenses.

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in entity resourcing and financial statements There is no material difference between the entity resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements CrimTrac’s 2015–16 budget is underpinned by the assumption that its governance and pricing arrangements will remain in their current form, with CrimTrac maintaining the ability to generate and retain revenues for its own purposes. Any change to this arrangement would require the budget estimates to be revised accordingly.

CrimTrac is budgeting for operating losses in 2014–15 and 2015–16 and a break-even position in the forward years.

Comprehensive income statement Expenses Total expenses are estimated to decrease by $3.410m from 2014–15 to 2015–16. Supplier expenses are forecast to decrease in 2015–16 by $3.812m, with small increases in employee expenses and depreciation and amortisation. The decrease in estimated supplier expenses in 2015–16 is due to additional project expenditure approved in 2014–15.

Revenue CrimTrac’s primary source of revenue is generated by the National Police Checking Service, which provides national criminal history checks undertaken for employment purposes. In 2014–15, CrimTrac is budgeting to perform approximately 3.7 million checks, and in 2015–16 it is anticipated that check volumes will grow by around 2%.

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The revenue generated from these checks contributes approximately 97% of total own-source revenue.

Other gains reflect the estimated value of services provided by the Australian National Audit Office in conducting the annual financial statements audit.

Budgeted departmental balance sheet Differences in previously published estimates and this budget primarily reflect the estimated operating results in 2014–15 and the forward years.

Trade and other receivables include the cash balance of the National Policing Information Systems and Services Special Account, which is held as part of the Official Public Account. The National Policing Information Systems and Services Special Account is projected to have a balance of $110.515m at the end of 2015–16. The majority of this reserve represents depreciation funding accumulated to fund the replacement of capital assets. This reflects the nature of CrimTrac’s ICT-dependent business and the fact that until recently CrimTrac has not been required to replace its core systems—and so has not largely offset its accumulated depreciation funding against capital outlays. With all systems now in full production and CrimTrac into its second decade of operation, the agency is in a replacement and reinvestment phase. CrimTrac will rely upon the funds provided for under depreciation to ensure ongoing replacement and maintenance of the existing systems.

Intangible assets reflect the largest part of CrimTrac’s non-financial asset base. For CrimTrac, intangible assets comprise internally developed and purchased software.

Statement of changes in equity Equity has been adjusted for the 2014–15 estimated actual results and the movements in the 2015–16 estimated net result.

Statement of cash flows In CrimTrac’s cash flow statement, operating receipts and payments reflect activity in the budgeted income statement and associated movements in the balance sheet. The cash flow statement also reflects GST inflows and outflows.

Movements listed as cash used for or received from financing activities reflect the net movement of funds to and from the Official Public Account.

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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 26,277 26,562 27,561 27,675 28,504 Suppliers 39,737 35,925 34,961 34,940 34,347 Depreciation and amortisation 10,517 10,634 11,177 12,298 12,036 Total expenses 76,531 73,121 73,699 74,913 74,887 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 73,434 72,302 73,629 74,843 74,817 Total own-source revenue 73,434 72,302 73,629 74,843 74,817 Gains Other 70 70 70 70 70 Total gains 70 70 70 70 70 Total own-source income 73,504 72,372 73,699 74,913 74,887 Net cost of (contribution by) services 3,027 749 – – – Surplus (deficit) attributable to the Australian Government (3,027) (749) – – – OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (3,027) (749) – – – Total comprehensive income (loss) attributable to the Australian Government (3,027) (749) – – – 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 600 600 600 600 600 Trade and other receivables 120,499 119,284 117,111 117,659 117,945 Total financial assets 121,099 119,884 117,711 118,259 118,545 Non-financial assets Land and buildings 2,445 1,728 1,011 294 5,144 Property, plant and equipment 7,459 6,280 4,108 467 4,717 Intangibles 17,214 19,576 24,638 28,448 19,062 Other non-financial assets 3,212 3,212 3,212 3,212 3,212 Total non-financial assets 30,330 30,796 32,969 32,421 32,135 Total assets 151,429 150,680 150,680 150,680 150,680 LIABILITIES Payables Suppliers 5,735 5,735 5,735 5,735 5,735 Other payables 274 274 274 274 274 Total payables 6,009 6,009 6,009 6,009 6,009 Provisions Employee provisions 7,832 7,832 7,832 7,832 7,832 Total provisions 7,832 7,832 7,832 7,832 7,832 Total liabilities 13,841 13,841 13,841 13,841 13,841 Net assets 137,588 136,839 136,839 136,839 136,839 EQUITY Parent entity interest Reserves 3,777 3,777 3,777 3,777 3,777 Retained surplus (accumulated deficit) 133,811 133,062 133,062 133,062 133,062 Total parent entity interest 137,588 136,839 136,839 136,839 136,839 Total equity 137,588 136,839 136,839 136,839 136,839 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (budget year 2015–16) Asset Retained revaluation Total earnings reserve equity $’000 $’000 $’000 Opening balance as at 1 July 2015 Balance carried forward from previous period 133,811 3,777 137,588 Adjustment for changes in accounting policies – – – Adjusted opening balance 133,811 3,777 137,588 Comprehensive income Surplus (deficit) for the period (749) – (749) Total comprehensive income (749) – (749) Estimated closing balance as at 30 June 2016 133,062 3,777 136,839 Closing balance attributable to the Australian Government 133,062 3,777 136,839 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 Sale of goods and rendering of services 77,752 79,147 80,717 82,327 82,299 Other 2,750 350 250 – – Total cash received 80,502 79,497 80,967 82,327 82,299 Cash used Employees 26,277 26,562 27,561 27,675 28,504 Suppliers 43,634 39,440 38,380 38,357 37,705 Net GST paid 3,102 3,610 3,849 3,997 4,054 Total cash used 73,013 69,612 69,790 70,029 70,263 Net cash from (used by) operating activities 7,489 9,885 11,177 12,298 12,036 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 12,150 11,100 13,350 11,750 11,750 Total cash used 12,150 11,100 13,350 11,750 11,750 Net cash from (used by) investing activities (12,150) (11,100) (13,350) (11,750) (11,750) FINANCING ACTIVITIES Cash received Other 3,521 1,215 2,173 – – Total cash received 3,521 1,215 2,173 – – Cash used Other – – – 548 286 Total cash used – – – 548 286 Net cash from (used by) financing activities 3,521 1,215 2,173 (548) (286) Net increase (decrease) in cash held (1,140) – – – – Cash and cash equivalents at the beginning of the reporting period 1,740 600 600 600 600 Cash and cash equivalents at the end of the reporting period 600 600 600 600 600 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 PURCHASE OF NON-FINANCIAL ASSETS Funded internally from departmental resources 12,150 11,100 13,350 11,750 11,750 Total purchases of non-financial assets 12,150 11,100 13,350 11,750 11,750 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 12,150 11,100 13,350 11,750 11,750 Total cash used to acquire assets 12,150 11,100 13,350 11,750 11,750 Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (budget year 2015–16) Other property, Computer plant & software & Buildings equipment intangibles Total $’000 $’000 $’000 $’000 As at 1 July 2015 Gross book value 8,436 25,607 97,152 131,195 Accumulated depreciation/amortisation and impairment (5,991) (18,148) (79,938) (104,077) Opening net book balance 2,445 7,459 17,214 27,118 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—other – 2,690 8,410 11,100 Total additions – 2,690 8,410 11,100 Other movements Depreciation/amortisation expense (717) (3,869) (6,048) (10,634) Total other movements (717) (3,869) (6,048) (10,634) As at 30 June 2016 Gross book value 8,436 28,297 105,562 142,295 Accumulated depreciation/amortisation and impairment (6,708) (22,017) (85,986) (114,711) Closing net book balance 1,728 6,280 19,576 27,584 Prepared on Australian Accounting Standards basis.

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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 Amounts appropriated are recognised as revenue and appropriations received are recognised at their nominal amounts.

Employee expenses Employee expenses consist of salaries, leave entitlements, superannuation and non-salary benefits.

Supplier expenses Supplier expenses consist of administrative costs, consultant and contractor costs, workers’ compensation and insurance, information technology expenditure, travel expenses and property operating expenses.

Cash Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Assets Assets comprise cash, receivables, leasehold improvements, equipment and intangibles, such as software. All assets are held at fair value, other than software which is held at cost. Receivables include cash held in the Official Public Account.

Liabilities Liabilities comprise employee salaries, leave entitlements and amounts owed to creditors.