2014-15 Paes Australian Federal Police

AUSTRALIAN FEDERAL POLICE

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION

The strategic direction statement for the Australian Federal Police (AFP) can be found in the 2014–15 Portfolio Budget Statements. There has been no change to the AFP’s strategic direction as a result of Additional Estimates.

1.2 ENTITY RESOURCE STATEMENT

The entity resource statement details the resourcing for the AFP at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2014–15 budget year, including variations through Appropriation Bills Nos. 3 and 4 and special accounts.

75 Australian Federal Police

Table 1.1: Entity resource statement—additional estimates for 2014–15 as at Add itional Estimates February 2015 Total estimate Estimate Proposed at Total as at Additional Additional available Budget + Estimates = Estimates appropriation 2014–15 2014–15 2014–15 2013–14 $’000 $’000 $’000 $’000 ORDINARY ANNUAL SERVICES(1) Departmental appropriation Prior year departmental appropriation(2) 272,560 (780) 271,780 256,737 Departmental appropriation(3) 1,054,174 42,483 1,096,657 1,026,257 s 74 retained revenue receipts(4) 288,784 (18,381) 270,403 316,855 Total 1,615,518 23,322 1,638,840 1,599,849 Administered expenses Outcome 1 17,560 715 18,275 19,755 Total 17,560 715 18,275 19,755 Total ordinary annual services A 1,633,078 24,037 1,657,115 1,619,604 OTHER SERVICES(5) Departmental non-operating Equity injections 126,569 (1,826) 124,743 99,208 Total 126,569 (1,826) 124,743 99,208 Total other services B 126,569 (1,826) 124,743 99,208 Total available annual appropriations 1,759,647 22,211 1,781,858 1,718,812 Total appropriations excluding special accounts 1,759,647 22,211 1,781,858 1,718,812 SPECIAL ACCOUNTS Opening balance(6) 4,982 852 5,834 4,982 Appropriation receipts(7) 1,522 – 1,522 1,526 Non-appropriation receipts to special accounts 6,988 – 6,988 11,260 Total special accounts C 13,492 852 14,344 17,768 Total resourcing (A+B+C) 1,773,139 23,063 1,796,202 1,736,580 Less appropriations drawn from annual or special appropriations above and credited to special accounts (8,510) – (8,510) (12,786) Total net resourcing for entity 1,764,629 23,063 1,787,692 1,723,794 All figures are GST exclusive. (1) Appropriation Act (No. 1) 2014–15 and Appropriation Bill (No. 3) 2014–15. (2) Estimated adjusted balance carried forward from previous year for annual appropriations. Reductions in prior year appropriations reflect agreements that the AFP has in place where the AFP did not spend the available appropriation. (3) Includes an amount of $35.207m in 2014–15 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’. (4) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013. (5) Appropriation Act (No. 2) 2014–15 and Appropriation Bill (No. 4) 2014–15. (6) 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 3.1.1.

(7) Appropriation receipts from annual and special appropriations for 2013–14 included above. 1.3 ENTITY MEASURES TABLE Table 1.2 summarises new government measures taken since the 2014–15 Budget. The table is split into expense and capital measures, with the affected programme identified. Table 1.2: Entity 2014–15 measures since Budget 2014–15 2015–16 2016–17 2017–18 Programme $’000 $’000 $’000 $’000 Expense measures Communications and Public Affairs Functions—targeted savings 1.1 Departmental expenses (133) (264) (263) (266) Total (133) (264) (263) (266) National Security—additional counter-terrorism funding 1.1 Administered expenses 715 814 830 846 Departmental expenses 16,266 17,453 17,559 17,706 Total 16,981 18,267 18,389 18,552 National Security—Australian Parliament House security upgrades 1.1 Departmental expenses 18,287 17,501 17,528 17,556 Total 18,287 17,501 17,528 17,556 National Security—Enhanced Protective Security Arrangements 1.1 Departmental expenses 15,724 22,229 23,835 20,606 Total 15,724 22,229 23,835 20,606 Funding for pre-existing measures affecting the public sector 1.1, 1.2 Departmental expenses 9,930 – – – Total 9,930 – – – Royal Commission into Trade Union Governance and Corruption—extension 1.2 Departmental expenses (3,100) – – – Total (3,100) – – – Total expense measures Administered 715 814 830 846 Departmental 56,974 56,919 58,659 55,602 Total 57,689 57,773 59,489 56,448 Capital measures National Security—additional counter-terrorism funding 1.1 Departmental capital 4,886 137 – – Total 4,886 137 – – National Security—Australian Parliament House security upgrades 1.1 Departmental capital 382 319 – – Total 382 319 – – National Security—Enhanced Protective Security Arrangements 1.1 Departmental capital 4,098 651 – – Total 4,098 651 – – Total capital measures Departmental 9,366 1,107 – – Total 9,366 1,107 – – Decisions taken but not yet announced 4,703 8,027 7,996 8,073

Prepared on a Government Finance Statistics (fiscal) basis.

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the AFP at Additional Estimates, by outcome. Table 1.3 details the additional estimates and variations resulting from new measures since the 2014–15 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details additional estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2014–15 Budget Programme 2014–15 2015–16 2016–17 2017–18 impacted $’000 $’000 $’000 $’000 OUTCOME 1 Increase in estimates (administered) National Security—additional counter-terrorism funding 1.1 715 814 830 846 Net impact on estimates for Outcome 1 (administered) 715 814 830 846 Increase in estimates (departmental) National Security—additional counter-terrorism funding 1.1 16,266 17,453 17,559 17,706 National Security—additional counter-terrorism funding—capital 1.1 4,886 137 – – National Security—Australian Parliament House security upgrades 1.1 18,287 17,501 17,528 17,556 National Security—Australian Parliament House security upgrades—capital 1.1 382 319 – – National Security—Enhanced Protective Security Arrangements 1.1 15,724 22,229 23,835 20,606 National Security—Enhanced Protective Security Arrangements—capital 1.1 4,098 651 – – Funding for pre-existing measures affecting the public sector 1.1, 1.2 9,930 – – – Decrease in estimates (departmental) Communications and Public Affairs Functions—targeted savings 1.1 (133) (264) (263) (266) Royal Commission into Trade Union Governance and Corruption—extension 1.2 (3,100) – – – Net impact on estimates for Outcome 1 (departmental) 66,340 58,026 58,659 55,602 Decisions taken but not yet announced 4,703 8,027 7,996 8,073

Table 1.4: Additional estimates and variations to outcomes from other variations Programme 2014–15 2015–16 2016–17 2017–18 impacted $’000 $’000 $’000 $’000 OUTCOME 1 Decrease in estimates (administered) Changes in wage and price indices 1.1, 1.2 – (33) (21) (14) Net impact on estimates for Outcome 1 (administered) – (33) (21) (14) Increase in estimates (departmental) Reappropriation of amounts repealed under the Omnibus Repeal Day (Autumn 2014) Act 2014—capital 1.1 – 5,526 – – Decrease in estimates (departmental) Change in funding source for National Anti-Gang Squad to section 74 1.1 (3,638) (3,127) (3,218) – Change in funding source for National Anti-Gang Squad to section 74—capital 1.1 (179) – – – Major sporting events funding(1) 1.1 (15,556) – – – Major sporting events funding—capital(1) 1.1 (11,013) – – – Regional Assistance Mission to Solomon Islands 2012 funding agreement 1.1 (438) – – – Changes in wage and price indices 1.1, 1.2 – (1,994) (1,997) (2,768) Living Away From Home Allowance funding agreement 1.1, 1.2 (342) – – – Net impact on estimates for Outcome 1 (departmental) (31,166) 405 (5,215) (2,768) (1) Return of funding no longer required following change in scope of necessary services.

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the additional estimates sought for the AFP through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2014–15 2013–14 2014–15 2014–15 Additional Reduced Available(1) Budget Revised Estimates Estimates $’000 $’000 $’000 $’000 $’000 ADMINISTERED ITEMS Outcome 1 Reduced criminal and security threats to Australia’s collective economic and societal interests through co-operative policing services 19,755 17,560 18,275 715 – Total administered 19,755 17,560 18,275 715 – DEPARTMENTAL PROGRAMMES Outcome 1 Reduced criminal and security threats to Australia’s collective economic and societal interests through co-operative policing services 1,026,257 1,054,174 1,096,657 64,910 (22,427) Total departmental 1,026,257 1,054,174 1,096,657 64,910 (22,427) Total administered and departmental 1,046,012 1,071,734 1,114,932 65,625 (22,427) (1) 2013–14 available appropriation is included to allow a comparison of this year’s appropriation with what was made available for use in the previous year.

Table 1.6: Appropriation Bill (No. 4) 2014–15 2013–14 2014–15 2014–15 Additional Reduced Available(1) Budget Revised Estimates Estimates $’000 $’000 $’000 $’000 $’000 Non-operating Equity injections 99,208 126,569 124,743 9,366 (11,192) Total non-operating 99,208 126,569 124,743 9,366 (11,192) (1) 2013–14 available appropriation is included to allow a comparison of this year’s appropriation with what was made available for use in the previous year.

Section 2: Revisions to outcomes and planned performan ce

2.1 OUTCOME AND PERFORMANCE INFORMATION

There are no changes to the AFP’s outcome and performance information as reported in the 2014–15 Portfolio Budget Statements.

OUTCOME 1

Outcome 1 strategy There are no changes to the strategy for Outcome 1 as reported in the 2014–15 Portfolio Budget Statements.

Table 2.1.1: Budgeted expenses for Outcome 1 2014–15 2013–14 Revised Outcome 1: Reduced criminal and security threats to Australia’s Actual estimated collective economic and societal interests through co-operative expenses expenses policing services $’000 $’000 Programme 1.1: Federal Policing and National Security Administered expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 2,560 3,553 Departmental expenses Departmental appropriation(1) 861,396 929,284 Special accounts 11,934 8,510 Expenses not requiring appropriation in the budget year(2) 76,683 102,369 Total for Programme 1.1 952,573 1,043,716 Programme 1.2: International Police Assistance Administered expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 17,360 14,722 Departmental expenses Departmental appropriation(1) 276,494 239,862 Expenses not requiring appropriation in the budget year(2) 8,770 8,706 Total for Programme 1.2 302,624 263,290 Outcome 1 totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 19,920 18,275 Departmental expenses Departmental appropriation 1,137,890 1,169,146 Special accounts 11,934 8,510 Expenses not requiring appropriation in the budget year 85,453 111,075 Total expenses for Outcome 1 1,255,197 1,307,006

2013–14 2014–15 Average staffing level (number) 5,622 5,509 (1) Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)’ and ‘s 74 retained revenue receipts’.

(2) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses, audit fees and resources received free of charge. Programme 1.1 expenses 2014–15 2015–16 2016–17 2017–18 2013–14 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Administered item 2,560 3,553 2,641 976 994 Special account expenses Services for Other Entities and Trust Moneys 11,934 8,510 8,500 8,495 8,509 Annual departmental expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 753,239 827,489 788,367 775,578 734,241 s 74 retained revenue receipts 108,157 101,795 83,890 82,883 82,148 Expenses not requiring appropriation in the budget year(1) 76,683 102,369 105,199 91,250 90,184 Total programme expenses 952,573 1,043,716 988,597 959,182 916,076 (1) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses, audit fees and resources received free of charge.

Programme 1.2 expenses 2014–15 2015–16 2016–17 2017–18 2013–14 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Administered item 17,360 14,722 13,951 9,860 3,804 Annual departmental expenses Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) 252,691 225,451 218,160 213,908 149,574 s 74 retained revenue receipts 23,803 14,411 5,973 5,620 5,253 Expenses not requiring appropriation in the budget year(1) 8,770 8,706 8,631 7,282 7,190 Total programme expenses 302,624 263,290 246,715 236,670 165,821 (1) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses, audit fees and resources received free of charge.

OUTCOME 2

Outcome 2 strategy There are no changes to the strategy for Outcome 2 as reported in the 2014–15 Portfolio Budget Statements.

Table 2.1.2: Budgeted expenses for Outcome 2 2014–15 2013–14 Revised Actual estimated Outcome 2: A safe and secure environment through policing activities expenses expenses on behalf of the Australian Capital Territory Government $’000 $’000 Programme 2.1: ACT Community Policing Departmental expenses Departmental appropriation(1) 152,592 153,623 Expenses not requiring appropriation in the budget year(2) 8,401 5,310 Total expenses for Outcome 2 160,993 158,933

2013–14 2014–15 Average staffing level (number) 974 978 (1) Departmental appropriation consists of section 74 retained revenue receipts. (2) Expenses not requiring appropriation in the budget year are made up of audit fees and resources received free of charge.

Programme 2.1 expenses 2014–15 2015–16 2016–17 2017–18 2013–14 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses s 74 retained revenue receipts 152,592 153,623 154,482 153,162 155,242 Expenses not requiring appropriation in the budget year(1) 8,401 5,310 5,310 5,310 5,310 Total programme expenses 160,993 158,933 159,792 158,472 160,552 (1) Expenses not requiring appropriation in the budget year are made up of audit fees and resources received free of charge.

Section 3: Explanatory tables and budgeted financial stat ements

3.1 EXPLANATORY TABLES

Estimates of special account flows Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the AFP. The corresponding table in the 2014–15 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Opening Closing balance Receipts Payments balance 2014–15 2014–15 2014–15 2014–15 2013–14 2013–14 2013–14 2013–14 Outcome $’000 $’000 $’000 $’000 Services for Other Entities and Trust Moneys—Public Governance, Performance and Accountability Act 2013 s 78 1 5,834 8,510 8,510 5,834 Determination 2011/03 (D) 1 4,982 12,786 11,934 5,834 Total special accounts 2014–15 Budget estimate 5,834 8,510 8,510 5,834 Total special accounts 2013–14 actual 4,982 12,786 11,934 5,834 (D) = Departmental. Note: ‘Receipts’ include $1.522m appropriated in departmental Appropriation Bill (No. 1) 2014–15 (see Table 1.1).

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements Changes to the departmental and administered budgeted financial statements since the 2014–15 Portfolio Budget Statements include actual financial results for 2013–14, new measures, reappropriation of funds and indexation updates.

Departmental The AFP’s 2014–15 departmental estimates have increased overall by $22.637m from the 2014–15 Portfolio Budget Statements estimates. The following material adjustments are reflected in the AFP’s budgeted resource statement for departmental expenditure: • $87.143m over the forward estimates for enhanced protective security measures • $74.007m over the forward estimates for additional counter-terrorism funding • $71.573m over the forward estimates for Australian Parliament House security upgrades • $26.596m returned to government in 2014–15 in relation to the delivery of protective security arrangements for major sporting events, such as the Asian Football Cup and the Cricket World Cup.

The overall change to the budgeted departmental balance sheet primarily reflects the update of the 2013–14 actuals, which results in changed opening balances.

The AFP’s estimated 2014–15 capital budget of $151.928m is a reduction of $1.487m since the estimate of $153.415m in the 2014–15 Portfolio Budget Statements. The reduction represents a net movement attributed to the return of funding associated with the Asian Football Cup and the Cricket World Cup and capital associated with new measures. An amount of $5.526m repealed under the Omnibus Repeal Day (Autumn 2014) Act 2014 has been reappropriated to the AFP in 2015–16.

Administered The AFP’s 2014–15 estimated expenses administered on behalf of government have increased by $0.715m to $18.275m. The increase relates to additional counter-terrorism funding.

3.2.2 Budgeted financial statements Departmental Table 3.2.1: Budgeted departmental comprehensive income statement (showing net cost of services) for the period ended 30 June Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 893,487 884,688 842,967 828,405 760,785 Suppliers 412,097 451,700 421,513 416,350 379,290 Grants 199 – – – – Depreciation and amortisation 88,086 110,744 113,500 98,201 97,044 Finance costs 522 532 532 532 532 Write-down and impairment of assets 1,879 – – – – Total expenses 1,396,270 1,447,664 1,378,512 1,343,488 1,237,651 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 296,535 269,718 244,017 241,226 242,193 Other revenue 1,597 450 450 450 450 Total own-source revenue 298,132 270,168 244,467 241,676 242,643 Gains Other gains 5,869 5,641 5,640 5,641 5,640 Total gains 5,869 5,641 5,640 5,641 5,640 Total own-source income 304,001 275,809 250,107 247,317 248,283 Net cost of (contribution by) services 1,092,269 1,171,855 1,128,405 1,096,171 989,368 Revenue from government 991,883 1,061,450 1,015,027 997,981 892,324 Surplus (deficit) (100,386) (110,405) (113,378) (98,190) (97,044) Total comprehensive income (loss) (100,386) (110,405) (113,378) (98,190) (97,044)

Note: Impact of net cash appropriation arrangements 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations (12,300) 339 122 11 – Less depreciation/amortisation expenses previously funded through revenue appropriations 88,086 110,744 113,500 98,201 97,044 Total comprehensive income (loss) as per the statement of comprehensive income (100,386) (110,405) (113,378) (98,190) (97,044) Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 7,818 7,818 7,818 7,818 7,818 Trade and other receivables 344,192 305,915 273,057 261,843 232,087 Other financial assets 7,721 7,722 7,722 7,722 7,722 Total financial assets 359,731 321,455 288,597 277,383 247,627 Non-financial assets Land and buildings 280,225 320,871 323,495 308,227 294,823 Property, plant and equipment 141,595 133,472 124,124 129,363 146,498 Intangibles 55,118 63,782 57,563 54,272 55,449 Inventories 7,416 7,416 7,416 7,416 7,416 Other non-financial assets 20,234 20,841 21,466 22,110 22,773 Total non-financial assets 504,588 546,382 534,064 521,388 526,959 Total assets 864,319 867,837 822,661 798,771 774,586 LIABILITIES Payables Suppliers 72,810 77,397 72,588 71,077 65,718 Other payables 47,240 42,419 15,324 18,590 18,323 Total payables 120,050 119,816 87,912 89,667 84,041 Provisions Employee provisions 284,391 285,917 300,204 290,121 266,454 Other provisions 15,791 17,140 17,352 17,652 17,852 Total provisions 300,182 303,057 317,556 307,773 284,306 Total liabilities 420,232 422,873 405,468 397,440 368,347 Net assets 444,087 444,964 417,193 401,331 406,239 EQUITY Parent entity interest Contributed equity 770,050 881,335 966,942 1,049,270 1,151,222 Reserves 92,789 92,789 92,789 92,789 92,789 Retained surplus (accumulated deficit) (418,752) (529,160) (642,538) (740,728) (837,772) Total parent entity interest 444,087 444,964 417,193 401,331 406,239 Total equity 444,087 444,964 417,193 401,331 406,239 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of moveme nt (budget year 2014–15) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2014 Balance carried forward from previous period (418,755) 92,789 770,050 444,084 Adjustment for changes in accounting policies – – – – Adjusted opening balance (418,755) 92,789 770,050 444,084 Comprehensive income Surplus (deficit) for the period (110,405) – – (110,405) Total comprehensive income (110,405) – – (110,405) Transactions with owners Distributions to owners Returns of capital Distribution of equity – – (5,526) (5,526) Contributions by owners Equity injection—appropriation – – 81,604 81,604 Departmental capital budget – – 35,207 35,207 Sub-total transactions with owners – – 111,285 111,285 Estimated closing balance as at 30 June 2015 (529,160) 92,789 881,335 444,964 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 1,291,446 1,335,356 1,283,574 1,254,182 1,170,579 Sale of goods and rendering of services 314,867 269,953 244,257 241,473 242,448 Net GST received 35,354 30,214 29,606 29,303 27,466 Other – 450 450 450 450 Total cash received 1,641,667 1,635,973 1,557,887 1,525,408 1,440,943 Cash used Employees 860,220 888,150 855,982 835,437 784,931 Suppliers 456,735 477,081 457,076 448,037 413,114 s 74 retained revenue receipts transferred to Official Public Account 316,855 270,403 244,707 241,923 242,898 Other 2,632 – – – – Total cash used 1,636,442 1,635,634 1,557,765 1,525,397 1,440,943 Net cash from (used by) operating activities 5,225 339 122 11 – INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 338 – – – – Total cash received 338 – – – – Cash used Purchase of property, plant, equipment and intangibles 95,021 151,928 100,557 84,881 101,952 Total cash used 95,021 151,928 100,557 84,881 101,952 Net cash from (used by) investing activities (94,683) (151,928) (100,557) (84,881) (101,952) FINANCING ACTIVITIES Cash received Contributed equity 89,201 151,589 100,435 84,870 101,952 Total cash received 89,201 151,589 100,435 84,870 101,952 Net cash from (used by) financing activities 89,201 151,589 100,435 84,870 101,952 Net increase (decrease) in cash held (257) – – – – Cash and cash equivalents at the beginning of the reporting period 8,075 7,818 7,818 7,818 7,818 Cash and cash equivalents at the end of the reporting period 7,818 7,818 7,818 7,818 7,818 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budget—Act No. 1 (DCB) 31,347 35,207 45,262 66,067 91,922 Equity injections—Act No. 2 99,208 81,604 40,345 16,261 10,030 Total new capital appropriations 130,555 116,811 85,607 82,328 101,952 Provided for: Purchase of non-financial assets 89,200 116,811 85,607 82,328 101,952 Total items 89,200 116,811 85,607 82,328 101,952 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations(1) 51,608 116,382 44,101 18,803 10,030 Funded by capital appropriation—DCB(2) 37,592 35,207 56,334 66,067 91,922 Funded internally from departmental resources(3) 5,821 339 122 11 – Total amount spent 95,021 151,928 100,557 84,881 101,952 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 95,021 151,928 100,557 84,881 101,952 Total cash used to acquire assets 95,021 151,928 100,557 84,881 101,952 Consistent with information contained in the statement of asset movements and the budgeted statement of cash flows. DCB = departmental capital budget. (1) Includes both current and prior Act 2 and Bills 4 and 6 appropriations. (2) Does not include annual finance lease costs. Includes purchases from current and previous years’ DCBs. (3) Includes funding from current and prior year Act 1 and Bills 3 and 5 appropriations (excluding amounts from the DCB), donations and contributions, gifts, internally developed assets, section 74 retained revenue receipts, and proceeds from the sale of assets.

Table 3.2.6: Statement of asset movements (2014–15) Other property, Computer plant & software & Land Buildings equipment intangibles Total $’000 $’000 $’000 $’000 $’000 As at 1 July 2014 Gross book value 2,000 286,299 149,819 142,695 580,813 Accumulated depreciation/ amortisation and impairment – (8,074) (8,224) (87,577) (103,875) Opening net book balance 2,000 278,225 141,595 55,118 476,938 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity(1) – 61,764 37,506 17,112 116,382 By purchase—appropriation ordinary annual services(2) – 18,684 11,346 5,177 35,207 By purchase—other – – 339 – 339 Total additions – 80,448 49,191 22,289 151,928 OTHER MOVEMENTS Depreciation/amortisation expense – (39,803) (57,317) (13,624) (110,744) Other – 1 3 (1) 3 Total other movements – (39,802) (57,314) (13,625) (110,741) As at 30 June 2015 Gross book value 2,000 366,748 199,013 164,983 732,744 Accumulated depreciation/ amortisation and impairment – (47,877) (65,541) (101,201) (214,619) Closing net book balance 2,000 318,871 133,472 63,782 518,125 Prepared on Australian Accounting Standards basis. (1) ‘Appropriation equity’ refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Act (No. 2) 2014–15 and Appropriation Bill (No. 4) 2014–15. (2) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No. 1) 2014–15 and Appropriation Bill (No. 3) 2014–15 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

Administered Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 19,752 18,275 16,592 10,836 4,798 Write-down and impairment of assets 168 – – – – Total expenses administered on behalf of government 19,920 18,275 16,592 10,836 4,798 LESS: OWN-SOURCE INCOME Non-taxation revenue Other revenue 1,013 39,343 40,524 41,740 41,740 Total non-taxation revenue 1,013 39,343 40,524 41,740 41,740 Total own-source income administered on behalf of government 1,013 39,343 40,524 41,740 41,740 Net cost of (contribution by) services 18,907 (21,068) (23,932) (30,904) (36,942) Surplus (deficit) (18,907) 21,068 23,932 30,904 36,942 Total comprehensive income (loss) (18,907) 21,068 23,932 30,904 36,942 Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf o f government (as at 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 41 41 41 41 41 Trade and other receivables 155 155 155 155 155 Total financial assets 196 196 196 196 196 Non-financial assets Other non-financial assets 12 12 12 12 12 Total non-financial assets 12 12 12 12 12 Total assets administered on behalf of government 208 208 208 208 208 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 1,610 1,610 1,610 1,610 1,610 Total payables 1,610 1,610 1,610 1,610 1,610 Total liabilities administered on behalf of government 1,610 1,610 1,610 1,610 1,610 Net assets/(liabilities) (1,402) (1,402) (1,402) (1,402) (1,402) Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2013–14 2014–15 2015–16 2016–17 2017–18 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Net GST received 143 441 497 497 – Other 828 39,343 40,524 41,740 41,740 Total cash received 971 39,784 41,021 42,237 41,740 Cash used Suppliers 19,363 18,716 17,089 11,333 4,798 Total cash used 19,363 18,716 17,089 11,333 4,798 Net cash from (used by) operating activities (18,392) 21,068 23,932 30,904 36,942 Net increase (decrease) in cash held (18,392) 21,068 23,932 30,904 36,942 Cash and cash equivalents at the beginning of the reporting period 530 41 41 41 41 Cash from Official Public Account for: Appropriations 20,660 18,275 16,592 10,836 4,798 Cash to Official Public Account for: Appropriations (2,757) (39,343) (40,524) (41,740) (41,740) Cash and cash equivalents at the end of the reporting period 41 41 41 41 41 Prepared on Australian Accounting Standards basis.

3.2.3 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 Finance Minister’s Orders, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Departmental Revenue from government Amounts appropriated are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Sale of goods and rendering of services Revenue from the rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. Rendering of services revenue consists of revenue received under section 74 of the Public Governance, Performance and Accountability Act 2013. This includes policing services provided to the

ACT Government, protection services, criminal records checking fees and other cost-recovery activities.

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

Supplier expenses Supplier expenses consist of operational expenditure, administrative costs, consultants’ costs, 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 are made up of cash, receivables, leasehold improvements, and plant and equipment. All assets are held at fair value.

Liabilities Liabilities are made up of employee salary and leave entitlements, property lease restoration obligations and amounts owed to creditors.

Administered Revenues All administered revenues relate to the revenue received by the AFP on behalf of the Australian Government.

Supplier expenses Supplier expenses consist primarily of capacity development programme expenditure.