PM&C Portfolio Budget Statements 2013-14

PORTFOLIO BUDGET STATEMENTS 2013-14 BUDGET RELATED PAPER NO. 1.14

PRIME MINISTER AND CABINET PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMS BY AGENCY © Commonwealth of Australia 2013 ISBN: 978-1-922098-04-7 (Print) ISBN: 978-1-922098-05-4 (PDF) ISBN: 978-1-922098-06-1 (RTF) This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode .

Use of material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of the Prime Minister and Cabinet endorses you or your use of the work). The Department of the Prime Minister and Cabinet material used 'as supplied'. Provided you have not modified or transformed the Department of the Prime Minister and Cabinet material in any way including, for example, by changing the Department of the Prime Minister and Cabinet text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of the Prime Minister and Cabinet statistics – then the Department of the Prime Minister and Cabinet prefers the following attribution: Source: The Australian Government Department of the Prime Minister and Cabinet. Derivative material If you have modified or transformed the Department of the Prime Minister and Cabinet material, or derived new material from those of the Department of the Prime Minister and Cabinet in any way, then the Department of the Prime Minister and Cabinet prefers the following attribution: Based on: The Australian Government Department of the Prime Minister and Cabinet data. Use of the Coat of Arms The terms under which the Coat of Arms can be used are set out on the Department of the Prime Minister and Cabinet website (see www.dpmc.gov.au/guidelines/). Other Uses Inquiries regarding this licence and any other use of this document are welcome at: The Department of the Prime Minister and Cabinet PO Box 6500 Canberra ACT 2600 Tel: +61 2 6271 5111 Fax: +61 2 6271 5414 www.dpmc.gov.au The Hon Dr Andrew Leigh MP Parliamentary Secretary to the Prime Minister

President of the Senate Australian Senate Parliament House CANBERRA ACT 2600

Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Madam Speaker

I hereby submit Portfolio Budget Statements in support of the 2013-14 Budget for the Prime Minister and Cabinet Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

Andrew Leigh

Parliament House Telephone: 02 6277 4140 CANBERRA ACT 2600 Fax: 02 6277 8469 Abbreviations and conventions The following notation may be used:

NEC/nec not elsewhere classified - nil .. not zero, but rounded to zero na 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.

Enquiries Should 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.

iv User Guide to the Portfolio Budget Statements

v USER GUIDE

The purpose of the 2013-14 Portfolio Budget Statements (PB 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 PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2013-14. In this sense the PB 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 PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

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 accordingly, these entities are not reported in the PB Statements.

vi CONTENTS

Portfolio Overview 1 Prime Minister and Cabinet Portfolio Overview 3

Agency Resources and Planned Performance 11 Department of the Prime Minister and Cabinet 13 Australian National Audit Office 43 Australian Public Service Commission 71 National Mental Health Commission 101 Office of National Assessments 125 Office of the Commonwealth Ombudsman 147 Office of the Inspector-General of Intelligence and Security 167 Office of the Official Secretary to the Governor-General 187

Glossary 215

vii Portfolio Overview

1 Portfolio Overview

PRIME MINISTER AND CABINET PORTFOLIO 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 include:  advice to the Prime Minister across government on policy and implementation

 assistance to the Prime Minister in managing the Cabinet program

 co-ordination of government administration

 social inclusion, non-profit sector and volunteering

 national security policy co-ordination

 counter terrorism policy co-ordination

 cyber policy co-ordination

 intergovernmental relations and communications with state and territory governments

 increase awareness and adoption of best practice public sector administration

 monitoring and reporting of the mental health system

 assessments of international developments

 coordination and evaluation of Australia’s foreign intelligence activities

 impartial and independent investigation of complaints about the Australian Government actions and other statutory oversight and compliance functions

 ensuring compliance by the Australian Intelligence Community agencies with Australian Law and ministerial directions

 provisions of support to the Governor-General to perform their official duties

The structure and outcomes of the Portfolio are depicted in diagrammatic form on pages 6-7.

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 leadership role in providing expertise, guidance and performance monitoring. The APSC has a key role in improving the alignment and quality of APS human capital planning and management to support an efficient and effective whole of APS,

3 Portfolio Overview fostering talent and leadership, assuring agencies’ organisational capability, 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. The NMHC contributes 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 established under the Ombudsman Act 1976 that ensures 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 PB Statements. Portfolio Budget Statements are not required for the National Australia Day Council Limited as it is not funded by a direct appropriation.

Figure 1: Prime Minister and Cabinet Portfolio structure and outcomes

Prime Minister — The Hon Julia Gillard MP Minister Assisting the Prime Minister on Digital Productivity — Senator the Hon Stephen Conroy Minister Assisting the Prime Minister on Asian Century Policy — The Hon Dr Craig Emerson MP Minister for Social Inclusion — The Hon Mark Butler MP Minister Assisting the Prime Minister on Mental Health Reform — The Hon Mark Butler MP Minister for the Public Service and Integrity — The Hon Mark Dreyfus QC MP Cabinet Secretary — The Hon Jason Clare MP Minister Assisting the Prime Minister on the Centenary of ANZAC — The Hon Warren Snowdon MP Parliamentary Secretary to the Prime Minister — The Hon Dr Andrew Leigh MP

Department of the Prime Minister and Cabinet Secretary: Dr Ian J Watt AO Outcome*: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and program delivery.

National Australia Day Council Limited Acting Chief Executive Officer: Mr Adrian Watts 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**: To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public.

Australian Public Service Commission Commissioner: Mr Stephen Sedgwick AO 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

Office of the Commonwealth Ombudsman Ombudsman: Mr Colin Neave 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.

* Reader Note: The Outcome Statement for the Department of the Prime Minister and Cabinet was amended in November 2012 to reflect the current reporting obligations to the Cabinet, Portfolio Ministers and Parliamentary Secretaries.

** Reader Note: The Australian National Audit Office’s two Outcome Statements were revised into a single Outcome Statement in January 2013 to better reflect the ANAO’s role in providing assurance to the Government, Executive and public.

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2013-14 Budget year, by agency.

Table 1: Portfolio Resources 2013-14 Appropriation Receipts Total Bill No. 1 Bill No. 2 Special $'000 $'000 $'000 $'000 $'000 Departm ent of the Prim e Minister & Cabinet Administered appropriations 16,346 - - - 16,346 Departmental appropriations 188,642 3,000 - 10,714 202,356 Total: 204,988 3,000 - 10,714 218,702 National Australia Day Council Lim ited Administered appropriations - - - - - Departmental appropriations - - - 6,500 6,500 Total: - - - 6,500 6,500 Australian National Audit Office Administered appropriations - - - - - Departmental appropriations 75,266 - 598 3,324 79,188 Total: 75,266 - 598 3,324 79,188 Australian Public Service Com m ission Administered appropriations - - 60,806 - 60,806 Departmental appropriations 22,675 - - 27,444 50,119 Total: 22,675 - 60,806 27,444 110,925 National Mental Health Com m ission Administered appropriations 3,504 - - - 3,504 Departmental appropriations 3,012 - - - 3,012 Total: 6,516 - - - 6,516 Continued on next page

Table 1: Portfolio Resources 2013-14 (continued) Appropriation Receipts Total Bill No. 1 Bill No. 2 Special $'000 $'000 $'000 $'000 $'000 Office of National Assessm ents Administered appropriations - - - - - Departmental appropriations 33,164 - - - 33,164 Total: 33,164 - - - 33,164 Office of the Com m onw ealth Om budsm an Administered appropriations - - - - - Departmental appropriations 18,630 - - 2,630 21,260 Total: 18,630 - - 2,630 21,260 Office of the Inspector- General of Intelligence and Security Administered appropriations - - - - - Departmental appropriations 2,248 - - - 2,248 Total: 2,248 - - - 2,248 Office of the Official Secretary to the Governor-General Administered appropriations 2,071 - 394 - 2,465 Departmental appropriations 11,545 - - 14 11,559 Total: 13,616 - 394 14 14,024 Portfolio total 492,527 Less amounts transferred w ithin portfolio1 3,394 - - - 3,394 Resources available w ithin portfolio: 489,133 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.

8 Agency Resources and Planned Performance

Department of the Prime Minister and Cabinet 13

Australian National Audit Office 43

Australian Public Service Commission 71

National Mental Health Commission101

Office of National Assessments 125

Office of the Commonwealth Ombudsman 147

Office of the Inspector-General of Intelligence and Security 167

Office of the Official Secretary to the Governor-General 187

11 Department of the Prime Minister and Cabinet

Agency resources and planned performance

13 DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Agency overview and resources 17 1.1 Strategic direction statement 17 1.2 Agency resource statement 18 1.3 Budget measures 20 1.4 Revised program structure and disclosure 21 Section 2: Outcomes and planned performance 22 2.1 Outcomes and performance information 22 Section 3: Explanatory tables and budgeted financial statements 28 3.1 Explanatory tables 28 3.2 Budgeted financial statements 30

14 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 on matters that are at the forefront of public and government administration.

Strategically, PM&C 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 include:

 supporting the Prime Minister as head of government

 leading the APS in collaboration with the APSC

 providing advice on major domestic, international, and national security policy, drawing on expertise from across government

 using forward-looking research and analysis to advise on emerging issues, strategic policy challenges and priorities

 monitoring and providing advice on the implementation of key government initiatives, policies and programs

 providing services to enable efficient, effective and coordinated management of the business of government.

Further details of the objectives and performance evaluation mechanisms attached to this strategy are detailed in Section 2 of this document.

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.

Table 1.1: PM&C Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual s ervices 1 De partm e ntal appropriation Prior year departmental appropriation2 15,747 - 15,747 13,721 Departmental appropriation3 - 188,642 188,642 123,829 s31 Relevant agency receipts4 - 10,714 10,714 26,974 Total 15,747 199,356 215,103 164,524 Adm inistered e xpense s 5 Outcome 1: Policy & Support - 16,346 16,346 16,262 Total - 16,346 16,346 16,262 Total ordinary annual se rvice s A 15,747 215,702 231,449 180,786 Othe r s ervice s 6 De partm e ntal non-ope rating Equity injections - 3,000 3,000 1,700 Total - 3,000 3,000 1,700 Total other se rvices B - 3,000 3,000 1,700 Total available annual appropriations 15,747 218,702 234,449 182,486 Special appropriations Total s pe cial appropriations C - - - - Total appropriations e xcluding Special Accounts 15,747 218,702 234,449 182,486 Special Accounts Total Spe cial Accounts D - - - - Total res ourcing A+B+C+D 15,747 218,702 234,449 182,486 Total net re sourcing for agency 15,747 218,702 234,449 182,486 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $3.1m in 2013-14 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 $0.3m in 2013-14 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) 2013-14. Reader note: All figures are GST exclusive.

Third party payments from and on behalf of other agencies 2013-14 2012-13 $'000 $'000 R e c e i p t s r e c e i v e d f r o m o t h e r a g e n c i e s f o r t h e p r o v i s i o n o f s e r v i c e s ( d i s c l o s e d a b o v e w i t h i n D e p a r t m e n t a l s e c t i o n 3 1 ) 6,800 14,185

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to PM&C are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: PM&C 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Expense m easures Department of the Prime Minister and Cabinet - continued funding 1 1.1 Departmental expenses - 3,403 3,425 3,454 3,488 Total - 3,403 3,425 3,454 3,488 Group of 20 meeting in 2014 - Queensland Government security costs 2 Departmental expenses 1.1 - - - - - Total - - - - - United Nations Security Council Term 3 4 Departmental expenses 1.1 - 140 290 220 - Total - 140 290 220 - Total expense m easures Departmental - 3,543 3,715 3,674 3,488 Total - 3,543 3,715 3,674 3,488 1 This measure has been fully offset by The Treasury Portfolio. 2 Payment of this measure is made through the Department of the Treasury under Program 1.10: National Partnership Payments to the States. 3 PM&C’s component of the funding for this measure has been fully offset within the Department. 4 The lead agency for this measure is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Foreign Affairs Portfolio. Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO measures not previously reported in a portfolio statement Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Measures Targeted savings - public service efficiencies 1.1 Departmental expenses (585) (1,055) (1,455) (973) (937) Total (585) (1,055) (1,455) (973) (937) Total m easures Departmental (585) (1,055) (1,455) (973) (937) Total (585) (1,055) (1,455) (973) (937) Prepared on a Government Financial Statistics (fiscal) basis.

1.4 REVISED PROGRAM STRUCTURE AND DISCLOSURE

Since the publication of the 2012-13 PB Statements, PM&C has moved to a single program structure: ‘Program 1 - Prime Minister and Cabinet’. The previously reported ‘Program 1.2 Official and Ceremonial Support’ has been subsumed into Program 1.1.

In addition to consolidating Program 1.2 into Program 1.1, PM&C has modified the level of disclosure in the 2013-14 PB Statements, reporting at a program level rather than a program component level.

In amending the level of disclosure, PM&C performed a detailed review of the Key Performance Indicators (KPIs), Objectives and Deliverables reported in the 2012-13 PB Statements and made amendments to align with current and future operations of PM&C. The revised KPIs, Objectives and Deliverables are detailed in Section 2 of this document.

The changes to the level of disclosure, and the consolidation of programs, in the 2013-14 PB Statements does not reduce the transparency of information, nor does it change the accountability of PM&C. The level of disclosure reflects the current and future direction of PM&C and ensures readability is consistent across agency statements in line with guidance set by the Department of Finance and Deregulation.

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 program, specifying the performance indicators and targets used to assess and monitor the performance of PM&C in achieving Government outcomes.

The Outcome Statement for PM&C was amended in November 2012 to reflect the current reporting obligations to the Cabinet, Portfolio Ministers and Parliamentary Secretaries.

Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and program delivery.

Outcome 1 Strategy PM&C’s primary role is to provide policy advice and support to the Prime Minister and the Cabinet through a coordinated approach to the development and implementation of government policies. More specifically PM&C will:

 provide advice on major domestic, international and national security policy, including all matters considered by Cabinet  provide secretariat support for meetings of Cabinet, its committees and the Federal Executive Council and the processes to facilitate the decision-making role of Cabinet  monitor the implementation of key government initiatives, policies, programs and reform agendas  support COAG in progressing the COAG agenda in areas of major reform  develop the future leadership capability of the APS through the Secretary's role as head of the APS and Chair of the Secretaries' Board.

PM&C also provides leadership on policy advice for the G20 agenda as well as delivering all operational and security arrangements for the conduct of the meetings.

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

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: Provide high quality policy advice and support 2012-13 2013-14 to the Prim e Minister, the Cabinet, Portfolio Ministers Estimated Estimated and Parliam entary Secretaries including through the actual expenses coordination of governm ent activities, policy expenses developm ent and program delivery. $'000 $'000

Program 1.1: Prim e Minister and Cabinet Administered expenses Ordinary annual services (Appropriation Bill No. 1) 14,940 18,889 Departmental expenses Departmental appropriation 1 147,937 196,244 Expenses not requiring appropriation in the Budget year 2 10,782 8,674 Total for Program 1.1 173,659 223,807

Outcom e 1 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Bill No. 1) 14,940 18,889 Departmental expenses Departmental appropriation 1 147,937 196,244 Expenses not requiring appropriation in the Budget year 2 10,782 8,674 Total expenses for Outcom e 1 173,659 223,807 2012-13 2013-14 Average Staffing Level (num ber) 3 698 771 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, make good expense, audit fees and secondees. 3 The increase in ASL largely reflects the increased staff numbers for the delivery of G20. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.

Contributions to Outcome 1 Program 1.1: Prime Minister and Cabinet

Program Objective The objectives of PM&C are to:  Provide advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries on major domestic, international and national security policies including long term strategic issues and complex, cross cutting public policy challenges  Provide support to the Cabinet and its committees, the Federal Executive Council, COAG and the COAG Reform Council to facilitate informed decision making  Coordinate the national security community’s efforts to protect and strengthen our sovereignty, ensure a safe and resilient population, secure our assets, infrastructure and institutions and promote a favourable international environment  Provide support for the operations of the Prime Minister’s official residences and to former and designated Governors-General official offices  Provide support for major events and meetings and coordinating the logistical arrangements for the Prime Minister’s overseas visits PM&C will also strengthen the global economy and collaboration between major economies through chairing the G20 in 2014.

Program Expenses Departmental funding as detailed in Table 1.2 has been received in the 2013-14 Budget. The funding is a continuation of a terminating measure and will enable PM&C to continue to provide strategic policy advice on areas of key reform. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: National Compact, Philanthropy and Volunteering 5,513 5,489 5,502 5,600 5,704 National Counter Terrorism Committee Secretariat 111 111 111 112 112 Compensation and Legal Expenses 114 115 117 119 120 National Australia Day Council Limited 3,394 3,407 3,436 3,473 3,534 Parliament House Briefing Room 420 424 431 448 454 Prime Minister's Official Residences 1,722 1,725 1,816 1,895 1,944 State Occasions and Official Visits 3,256 3,153 3,317 3,592 3,677 Support to the former Governors-General1 410 4,465 467 443 443 Total administered expenses 14,940 18,889 15,197 15,682 15,988 Annual departmental expenses: Domestic Policy 62,858 53,239 51,261 51,745 52,298 National Security and International Policy 26,253 23,028 21,704 21,891 22,104 Support Services for Government Operations 32,013 28,884 27,492 27,731 28,009 Group of 20 Meeting 2014 22,206 86,975 213,701 1,390 - Support for Official Establishments 1,113 995 945 953 962 Official and Ceremonial Support 3,494 3,123 2,965 2,990 3,019 Total departmental expenses 147,937 196,244 318,068 106,700 106,392 Expenses not requiring appropriation in the Budget year 2 10,782 8,674 10,970 10,658 8,413 Total program expenses 173,659 223,807 344,235 133,040 130,793 1 Increase in 2013-14 relates to the recognition of a provision for projected future entitlements for former Governors-General. 2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees and secondees. Note: The funding available to PM&C for the delivery of the G20 was re-profiled in 2012-13. The re-profile allowed for the alignment of revenue from Government with the expected expenditure and will ensure sufficient resources are available to meet the costs of policy development and logistical arrangements. There was no change to the overall amount of funding provided to PM&C. 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.

Program Deliverables  Policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries in key areas including: o domestic policy matters, strategic priorities, and implementation including social inclusion and not-for-profit o national security matters, including the priorities articulated in the National Security Strategy o foreign, trade and aid policy, including bilateral relations and engagement with regional and international partners o defence matters, including Australian Defence Force operations, international defence cooperation and engagement, force posture and structure and Defence reforms o implementation of the Australia in the Asian Century White Paper o commemorative events, including Anzac Centenary commemorations o parliamentary, machinery of government, legal policy o Australia’s honours system and national symbols.  Leadership, policy coordination, monitoring and coordinated whole-of-government responses to Government’s decisions, policies and strategic priorities including: o enhanced regional engagement, integrated cyber policy and effective national security partnerships o countering people smuggling and irregular migration issues o major national security related crises or emergencies o Australia's national security community and national intelligence community o reform proposals with other Commonwealth agencies and state and territory governments for consideration by COAG and coordination of COAG’s work program o volunteer management.  Provision of secretariat and support services for 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 by, and hospitality for, guests of the government and heads of state, delivery of support for major events, ceremonies and state occasions and coordination of logistical arrangements for the Prime Minister’s overseas visits.

 Development of reform proposals with other Commonwealth agencies and state and territory governments for consideration by COAG and coordination of COAG’s work program.  Provision of support to the COAG Reform Council that reports to COAG on the implementation of nationally agreed reforms.  Delivery of Community Cabinet meetings.  Provision of support for the operations of the Prime Minister’s official residences and the Official Establishments Trust, and provision of entitlements to former Governors-General (excluding pension entitlements).  Policy development, operational and security arrangements for Australia’s role in the G20.

Program Key Performance Indicators  High quality, relevant and timely advice and support to the Prime Minister, the Cabinet and Cabinet committee chairs, Portfolio Ministers and Parliamentary Secretaries based on an objective and thorough understanding of issues and whole-of-government perspective.  Regular, timely and collaborative communication and co-operation with other central agencies, portfolio departments and other key stakeholders.  Successful coordination and support for COAG meetings and ensuring a well-coordinated delivery of the broad COAG agenda.  Successful leadership and coordination of the national security community to promote a national security system that anticipates threats, responds effectively to crises and major security events, protects the nation and shapes the world in Australia’s interest.  Advancement of the Government’s international priorities that promote Australia’s security, prosperity, international profile and influence.  Advice and support for key stakeholders for state occasions, official visits, operations of the Prime Minister’s official establishments and former Governors-General that is timely, relevant and of high quality.  Successfully advance Australia’s interests through the G20.

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 2013-14 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 years PM&C does not have any movement of administered funds between years.

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 the 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 balances Opening Closing balance Receipts Payments Adjustments balance 2013-14 2013-14 2013-14 2013-14 2013-14 2012-13 2012-13 2012-13 2012-13 2012-13 Outcome $'000 $'000 $'000 $'000 $'000 Service for other entities and - 1 1 - - trust monies - s. 20 FMA Act 1 - 2,100 2,100 - - Det 2008/13 (D)1

Total Special Accounts 2013-14 Budget estim ate - 1 1 - - Total Special Accounts 2012-13 estimated actual - 2,100 2,100 - - 1 The balance in 2012-13 reflects a contribution received from the state and territory governments for payment to the Queen’s Diamond Jubilee trust account. (D) = Departmental Note: 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).

3.1.3 Australian Government Indigenous expenditure Table 3.1.3: Australian Government Indigenous Expenditure (AGIE) Appropriations Other Total Program Bill Bill Special Total No. 1 No. 2 approp approp $'000 $'000 $'000 $'000 $'000 $'000 Departm ent of the Prim e Minister and Cabinet Outcom e 1 Departmental 2013-14 753 - - 753 - 753 1.1 Departmental 2012-13 751 - - 751 - 751 1.1 Total outcome 2013-14 753 - - 753 - 753 1.1 Total outcome 2012-13 751 - - 751 - 751 1.1 Total AGIE 2013-14 753 - - 753 - 753 Total AGIE 2012-13 751 - - 751 - 751

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements Departmental items The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2013-14. 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 items The 2013-14 administered expense figure of $16.3m 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 2013-14 appropriation, as per Table 1.1, and the expense shown in Table 3.2.7.

Reconciliation of differences in administered resourcing (Table 1.1) and financial statements (Table 3.2.7) Budget Estimate 2013-14 $'000 Table 3.2.7 Operating expe nses 18,889 Less Depreciation & amortisation expense (114) Unw inding of discount on former Governors-General entitlement provision (386) Increase to the Governors-General provision (3,927) Add Capital budget 289 Payments from the former Governors-General entitlement provision 1,595 Table 1.1 Adm inistered expenses - total ordinary annual service s 16,346

3.2.2 Analysis of budgeted financial statements Departmental

Income Statement Revenue from Government increases from $121.0m in 2012-13 to $185.5m in 2013-14 reflecting the additional revenue received to facilitate the policy development, operating and security arrangements for the G20.

Revenue will increase further to $306.9m in 2014-15 when the G20 leaders meeting is held and the associated expenditure is incurred. Revenue and expenses are expected to return to core levels in 2015-16 when the G20 Taskforce will cease operations.

Balance Sheet The budgeted net asset position is expected to remain steady into the 2013-14 Budget year and then decrease in the forward estimates as fixed assets are depreciated in line with the Department’s Capital Management Plan.

Administered

Schedule of budgeted income and expenses administered on behalf of government Budgeted expenses administered on behalf of Government will increase from $14.9m in 2012-13 to $18.9m in 2013-14. The increase primarily reflects the write-on of a provision for the expected future entitlements for former Governors-General.

Schedule of budgeted assets and liabilities administered on behalf of government The budgeted total administered assets remain steady over the Budget year and throughout the forward estimates. Total liabilities administered on behalf of Government increase from $13.9m in 2012-13 to $16.7m in 2013-14 reflecting an increase in the provision for former Governors-General. The provision tapers off in the forward estimates as payments are made against the provision.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 90,012 99,726 91,389 74,326 71,186 Supplier expenses 61,725 97,183 228,753 33,690 36,542 Grants 622 612 45 - - Depreciation and amortisation 6,337 7,374 8,827 9,318 7,052 Finance costs 23 23 24 24 25 Losses from asset sales - - - - - Total expenses 1 158,719 204,918 329,038 117,358 114,805 LESS: OWN-SOURCE INCOME Ow n-source revenue Sale of goods and rendering of services 26,974 10,714 11,191 5,648 5,707 Total ow n-source revenue 26,974 10,714 11,191 5,648 5,707 Gains Resources received free of charge 4,446 1,300 2,143 1,340 1,361 Total gains 4,446 1,300 2,143 1,340 1,361 Total ow n-source incom e 31,420 12,014 13,334 6,988 7,068 Net cost of (contribution by) services 127,299 192,904 315,704 110,370 107,737

Revenue from Government 120,962 185,530 * 306,877 * 101,052 * 100,685 * Surplus (deficit) attributable to the Australian Governm ent (6,337) (7,374) (8,827) (9,318) (7,052) Total com prehensive incom e attributable to the Australian Governm ent (6,337) (7,374) (8,827) (9,318) (7,052)

Note: Im pact of Net Cash Appropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations - - - - - plus depreciation/amortisation expenses previously funded through revenue approriations2 6,337 7,374 8,827 9,318 7,052 Total Com prehensive Incom e (loss) - as per Com prehensive Incom e Statem ent (6,337) (7,374) (8,827) (9,318) (7,052) 1 Drop in expenses from 2014-15 to 2015-16 relates to the completion of the G20 operations. 2 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and equivalents 1,000 1,000 1,000 1,000 1,000 Trade and other receivables 17,181 20,798 17,800 15,139 14,269 Other 2,907 1,048 958 967 977 Total financial assets 21,088 22,846 19,758 17,106 16,246 Non-financial assets Property, plant and equipment 39,142 38,211 35,212 28,842 27,126 Intangibles 1,820 1,489 1,036 1,058 782 Prepayments 861 3,490 341 414 456 Total non-financial assets 41,823 43,190 36,589 30,314 28,364 Total assets 62,911 66,036 56,347 47,420 44,610 LIABILITIES Payables Suppliers 5,050 7,139 2,007 1,991 2,281 Other1 6,933 4,843 5,045 5,352 5,703 Total payables 11,983 11,982 7,052 7,343 7,984 Interest bearing liabilities Leases 5,838 5,834 5,793 5,575 5,153 Total interest bearing liabilities 5,838 5,834 5,793 5,575 5,153 Provisions Employee provisions 21,818 24,728 22,594 18,240 17,428 Total provisions 21,818 24,728 22,594 18,240 17,428 Total liabilities 39,639 42,544 35,439 31,158 30,565 Net assets 23,272 23,492 20,908 16,262 14,045 EQUITY 2 Contributed equity 11,094 17,206 22,582 25,989 31,048 Reserves 8,175 8,175 8,175 8,175 8,175 Retained surplus (accumulated deficit) 4,003 (1,889) (9,849) (17,902) (25,178) Total e quity 23,272 23,492 20,908 16,262 14,045 1 Other payables includes unearned revenue, FBT payable and end of year salary accruals. 2 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period 4,003 8,175 11,094 23,272 Adjusted opening balance 4,003 8,175 11,094 23,272 Com prehensive incom e Surplus (deficit) for the period (7,374) - - (7,374) Total comprehensive income (7,374) - - (7,374) Transactions w ith ow ners Contributions by owners Contribution/(distribution) of Equity 1,482 - - 1,482 Appropriation (equity injection) - - 3,000 3,000 Departmental Capital Budget (DCB) - - 3,112 3,112 Sub-total transactions with owners 1,482 - 6,112 7,594 Estim ated closing balance as at 30 June 2014 (1,889) 8,175 17,206 23,492 Closing balance attributable to the Australian Governm ent (1,889) 8,175 17,206 23,492 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 120,962 185,530 306,877 101,052 100,685 Sale of goods and rendering of services 32,878 9,422 19,140 11,541 5,845 Net GST received 3,991 6,816 16,430 2,311 2,502 Cash from the OPA - - - - 431 Total cash received 157,831 201,768 342,447 114,904 109,463 Cash used Employees 90,133 96,487 93,188 78,338 71,650 Suppliers 60,321 103,033 248,344 34,930 37,813 Cash to the OPA 6,356 1,636 870 1,636 - Grants 1,021 612 45 - - Total cash used 157,831 201,768 342,447 114,904 109,463 Net cash from (used by) operating activities - - - - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 3,633 5,097 4,280 1,180 4,379 Purchase of Intangibles 934 1,015 1,096 2,224 680 Total cash used 4,567 6,112 5,376 3,404 5,059 Net cash from (used by) investing activities (4,567) (6,112) (5,376) (3,404) (5,059) FINANCING ACTIVITIES Cash received Contributed equity 4,567 6,112 5,376 3,404 5,059 Total cash received 4,567 6,112 5,376 3,404 5,059 Net cash from (used by) financing activities 4,567 6,112 5,376 3,404 5,059 Net increase (decrease) in cash held - - - - - Cash and cash equivalents at the beginning of the reporting period 1,000 1,000 1,000 1,000 1,000 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.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 2,867 3,112 3,376 3,407 5,059 Equity injections - Bill 2 1,700 3,000 2,000 - - Total capital appropriations 4,567 6,112 5,376 3,407 5,059 Total new capital appropriations Provided for: Purchase of non-financial assets 4,567 6,112 5,376 3,407 5,059 Total Item s 4,567 6,112 5,376 3,407 5,059 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 1,700 3,000 2,000 - - 2 Fundeddepartmental by capital resources appropriation - DCB 2,867 3,112 3,376 3,407 5,059 TOTAL 4,567 6,112 5,376 3,407 5,059 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 4,567 6,112 5,376 3,407 5,059 Total cash used to acquire assets 4,567 6,112 5,376 3,407 5,059 1 Capital appropriation relating to G20. DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Other property, Intangibles Total plant and equipment $'000 $'000 $'000 As at 1 July 2013 Gross book value 44,320 2,979 47,299 Accumulated depreciation/amortisation and impairment 5,178 1,159 6,337 Opening net book balance 39,142 1,820 40,962 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services1 2,097 1,015 3,112 By purchase - appropriation equity2 3,000 - 3,000 Total additions 5,097 1,015 6,112 Other m ovem ents Depreciation/amortisation expense 6,029 1,346 7,374 As at 30 June 2014 Gross book value 49,418 3,994 53,411 Accumulated depreciation/amortisation and impairment 11,207 2,505 13,711 Closing net book balance 38,211 1,489 39,700 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for the DCB. 2 "Appropriation equity" refers to equity injections provided through Appropriation Bill (No.2) 2013-14. Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Employee benefits 848 866 882 900 918 Suppliers1 4,546 8,516 4,677 5,030 5,146 Grants 9,018 9,007 9,049 9,185 9,350 Depreciation and amortisation 118 114 122 124 131 Finance costs 410 386 467 443 443 Total e xpe nses adm inistered on be half of Governm ent 14,940 18,889 15,197 15,682 15,988 Net Cost of (contribution by) service s (14,940) (18,889) (15,197) (15,682) (15,988) Surplus (deficit) (14,940) (18,889) (15,197) (15,682) (15,988) Total com prehensive incom e (loss) (14,940) (18,889) (15,197) (15,682) (15,988) 1 Increase in 2013-14 relates to the recognition of a provision for projected future entitlements for former Governors-General. Prepared on Australian Accounting Standards basis.

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 ard actual estimated estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Other investments1 964 964 964 964 964 Total financial assets 964 964 964 964 964 Non-financial assets Property, plant and equipment 1,673 1,848 1,878 2,006 2,127 Total non-financial assets 1,673 1,848 1,878 2,006 2,127 Total assets adm inistered on behalf of Governm ent 2,637 2,812 2,842 2,970 3,091 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 163 181 182 199 199 Grants 388 388 388 388 388 Other 71 75 79 38 38 Total payables 622 644 649 625 625 Provisions Employee provisions 379 387 394 402 402 Other2 12,952 15,672 14,855 14,122 13,989 Total provisions 13,331 16,059 15,249 14,524 14,391 Total liabilities adm inistered on behalf of Governm ent 13,953 16,703 15,898 15,149 15,016 Net assets/(liabilities) (11,316) (13,891) (13,056) (12,179) (11,925) 1 Investment in National Australia Day Council. 2 Relates to the provision for former Governors-General. The provision reduces from 2014-15 as payments are made against the provision rather than expensed in accordance with AASB 119. Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash use d Grant payments 9,018 9,007 9,049 9,185 9,350 Suppliers 5,533 5,800 5,497 5,812 5,279 Employees 839 229 234 238 246 Total cash used 15,390 15,036 14,780 15,235 14,875 Net cash from (used by) operating activities (15,390) (15,036) (14,780) (15,235) (14,875) INVESTING ACTIVITIES Cash use d Purchase of property, plant and equipment 3 289 151 252 252 Total cash used 3 289 151 252 252 Net cash from (used by) investing activities (3) (289) (151) (252) (252) Net increase (decrease) in cash held Cash and cash equivalents at beginning of reporting period 1 - - - - Cash from Official Public Account for: - Appropriations 16,259 16,057 15,892 16,292 16,591 16,260 16,057 15,892 16,292 16,591 Cash to Official Public Account for: - Appropriations (867) (961) (805) (1,464) (867) - (961) (805) (1,464) Cash and cash equivalents at end of reporting period - - - - - Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of Administered Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (ACB) 3 289 151 252 252 Total capital appropriations 3 289 151 252 252 Total new capital appropriations Represented by: Purchase of non-financial assets 3 289 151 252 252 Total Item s 3 289 151 252 252 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - ACB 3 289 151 252 252 Funded internally from prior year depreciation funding1 240 - - - - TOTAL 243 289 151 252 252 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 243 289 151 252 252 Total cash used to acquire assets 243 289 151 252 252 1 Includes prior year funding used to meet the requirements of maintaining the Prime Minister’s official residences. ACB = Administered Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.11: Statement of Asset Movements – Administered (2013-14) Asset Category Other Total property, plant and equipment $'000 $'000 As at 1 July 2013 Gross book value 1,792 1,792 Accumulated depreciation/amortisation impairment 119 119 Opening net book balance 1,673 1,673 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 289 289 Total additions 289 289 Other m ovem ents Depreciation/amortisation expense 114 114 As at 30 June 2014 Gross book value 2,081 2,081 Accumulated depreciation/amortisation impairment 233 233 Closing net book balance 1,848 1,848 Prepared on Australian Accounting Standards basis.

40 Australian National Audit Office

43 AUSTRALIAN NATIONAL AUDIT OFFICE

Section 1: Agency overview and resources 47 1.1 Strategic direction statement 47 1.2 Agency resource statement 48 1.3 Budget measures 50 1.4 Transition tables – outcome statements 51 Section 2: Outcomes and planned performance 52 2.1 Outcomes and performance information 52 Section 3: Explanatory tables and budgeted financial statements 59 3.1 Explanatory tables 59 3.2 Budgeted financial statements 60

44 ANAO Budget Statements

AUSTRALIAN NATIONAL AUDIT OFFICE

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

The ANAO’s strategic direction is focussed on meeting statutory obligations and stimulating improvements in public administration.

In 2013-14, the emphasis will be on implementing initiatives to:

 strengthen the understanding amongst stakeholders of our role and services

 ensure our services are high quality and provide insights into better public administration

 strengthen our leadership capability and succession planning to support agility in a complex and dynamic audit environment

 drive productivity improvements and support the long term sustainability for our audit programs.

These initiatives support ANAO values and will be met through the implementation of the ANAO’s objectives and strategies in four key focus areas:

 independent and responsive

 value adding services

 capability to deliver world class services

 confidence in the delivery of our services.

The ANAO charges an audit fee for the financial statement audits of Commonwealth authorities and companies and their subsidiaries subject to the Commonwealth Authorities and Companies Act 1997. These fees are based on a scale determined by the Auditor-General under section 14 of the Auditor-General Act 1997, calculated on the basis of a 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.

The ANAO is also permitted to charge for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997. The revenue is shown as sales of goods and rendering of services in Table 3.2.1 (comprehensive income statement).

Table 1.1: ANAO Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual s ervice s 1 De partm e ntal appropriation Prior year departmental appropriation2 28,609 - 28,609 26,405 Departmental appropriation3 - 75,266 75,266 74,722 s31 Relevant agency receipts4 - 3,324 3,324 3,324 Total 28,609 78,590 107,199 104,451 Total ordinary annual se rvices A 28,609 78,590 107,199 104,451 Othe r s e rvice s Total other se rvices B - - - - Total available annual appropriations 28,609 78,590 107,199 104,451 Special appropriations Special appropriations lim ite d by criteria/entitle m ent Auditor-General remuneration and expense - Auditor-General Act 1997, schedule 1, sections 3 and 7 - 598 598 558 Total s pe cial appropriations C - 598 598 558 Total appropriations e xcluding Special Accounts 28,609 79,188 107,797 105,009 Special Accounts Total Spe cial Accounts D - - - - Total res ourcing A+B+C+D 28,609 79,188 107,797 105,009 Total net re sourcing for agency 28,609 79,188 107,797 105,009 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $0.9m in 2013-14 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. Note: All figures are GST exclusive.

1.3 BUDGET MEASURES

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

Table 1.2: ANAO 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Expense m easures Australian National Audit Office - increased audit activity 1.1 Departmental expenses - 722 - - - Total - 722 - - - Total expense m easures Departmental - 722 - - - Total - 722 - - - Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO measures not previously reported in a portfolio statement Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Measures Targeted savings - public service efficiencies all Departmental expenses - (445) (370) (553) (526) Total - (445) (370) (553) (526) Total m easures Departmental - (445) (370) (553) (526) Total - (445) (370) (553) (526) Prepared on a Government Finance Statistics (fiscal) basis.

1.4 TRANSITION TABLES – OUTCOME STATEMENTS

To better reflect the ANAO’s role in providing assurance to the Parliament, the Executive and the public, the ANAO has transitioned to a single outcome. The existing programs have been retained under the new reporting structure.

A transition table from the structure published in the 2012-13 PB Statements to the 2013-14 PB Statements is shown below in Figure 1.

Figure 1: Transition Table 2012–13 Budget year 2013–14 Budget year Outcome 1: To provide assurance on Outcome 1: To improve public sector the fair presentation of financial performance and accountability statements of Australian Government through independent reporting on entities by providing independent Australian Government administration audit opinions and related reports for to Parliament, the Executive and the the information of Parliament and the public. Executive. Program 1.1: Assurance Audit Services Program 1.1: Assurance Audit Services Program 1.2: Performance Audit 2012–13 Budget year Services 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.

Program 1.2: Performance Audit Services

The ANAO’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 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: To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public.

Outcome 1 Strategy  The key strategy by which the ANAO will seek to achieve this outcome is through its audit services, which include:

 financial statement audits of Australian Government entities; and

 performance audits of Australian Government programs and entities.

 The ANAO audits the annual financial statements of Australian Government entities and the Consolidated Financial Statements of the Australian Government. The Consolidated Financial Statements present the consolidated whole-of- government financial result inclusive of all Australian Government controlled entities, including entities outside the general government sector. These audits are designed to give assurance to stakeholders that an entity’s financial statements fairly represented its financial operations and financial position at year end.

 The ANAO also undertakes a range of assurance reviews, including an assurance review of Defence Material Organisation major projects. Further, the ANAO is in the process of developing an audit methodology to assist with an assurance review of selected key performance indicators (KPIs). Full implementation of a KPI audit program is subject to funding in future years.

 The ANAO’s performance audit activities involve the audit of all or part of an entity’s operations to assess its efficiency or administrative effectiveness. The ANAO identifies areas where improvements can be made to aspects of public administration, and makes specific recommendations to assist public sector agencies improve their program management.

 The performance audit activity also extends to conducting performance audits of Commonwealth partners, which are those bodies (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. This 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 ANAO also contributes to improvements in Commonwealth public administration by identifying and promoting better practice that assists agencies to perform at their most efficient level, and adds value to their outputs and services. Adopting better practices can help transform and improve business processes and potentially can lead to overall improvements in the administration of the entity as a whole.

Outcome Expense Statement Table 2.1 provides an overview of the total expenses for outcome 1 by program.

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: To im prove public sector perform ance and 2012-13 2013-14 accountability through independent reporting on Estimated Estimated Australian Governm ent adm inistration to Parliam ent, the actual expenses Executive and the public. expenses $'000 $'000 Program 1.1: Assurance Audit Services Departmental expenses Departmental appropriation 1 44,859 47,118 Special appropriations 279 299 Expenses not requiring appropriation in the Budget year 2 1,068 1,068 Total for Program 1.1 46,206 48,485 Program 1.2: Perform ance Audit Services Departmental expenses Departmental appropriation 1 29,796 30,573 Special appropriations 279 299 Expenses not requiring appropriation in the Budget year 2 839 839 Total for Program 1.2 30,914 31,711 Outcom e 1 Totals by appropriation type Departmental expenses Departmental appropriation 1 74,655 77,691 Special appropriations 558 598 Expenses not requiring appropriation in the Budget year 2 1,907 1,907 Total expenses for Outcom e 1 77,120 80,196 2012-13 2013-14 Average Staffing Level (num ber) 348 348 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 and amortisation expense. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.

Contributions to Outcome 1

Program 1.1: Assurance Audit Services

Program Objective The objectives of this program are:  to provide assurance on the fair presentation of financial statements of the Australian Government and its entities by providing independent audit opinions and related reports for the information of Parliament, the Executive and the public  to contribute to improvements in the financial administration of Australian Government entities  to contribute to the auditing profession and public sector developments nationally and internationally.

Program Expenses •1 Expenditure includes employee expense (48%), supplier expenses (50%) and depreciation and amortisation expense (2%).

2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Special Appropriations: Auditor-General remuneration and expenses - Auditor-General Act 1997 279 299 313 322 332 Annual departmental expenses: Employee expenses 21,737 22,971 21,884 22,003 21,482 Supplier expenses 23,122 24,147 24,769 25,383 26,017 Expenses not requiring appropriation in the Budget year 1 1,068 1,068 1,068 1,068 1,068 Total program expenses 46,206 48,485 48,034 48,776 48,899 1 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.

Program Deliverables •2 The deliverables for the primary components of this program are listed below. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard Deliverables budget year 1 year 2 year 3 Number of financial statement audit opinions 260 260 260 260 260 issued Number of other assurance reports produced1 60 60 60 60 60 Number of financial statement related reports 2 2 2 2 2 produced Number of engagements that contribute to public sector auditing and support developing 20 20 20 20 20 nations 1 Includes DMO Major Projects report previously identified separately as a deliverable in Program 1.2.

Program Key Performance Indicators 2012-13 2013-14 2014-15 2015-16 2016-17 Key Performance Revised Budget Forw ard Forw ard Forw ard Indicators budget target year 1 year 2 year 3 Percentage of Parliamentarians surveyed expressing satisfaction w ith assurance provided by ANAO audit opinions issued in 90% 90% 90% 90% 90% relation to the financial statements of the Australian Government and its entities Percentage of Australian Government entities that are provided w ith an audit opinion for 100% 100% 100% 100% 100% tabling in the Parliament Percentage of Australian Government entities that acknow ledge the value added by ANAO 90% 90% 90% 90% 90% services Note: The ANAO updated its Key Performance Indicators for 2013-14 to include an additional indicator in relation to the percentage of Australian Government entities that acknowledge the value added by ANAO services. A number of amendments were also made to existing indicators to improve overall readability, and clarify the performance being measured.

Program 1.2: Performance Audit Services

Program Objective The objectives of this program are:  to report objectively on the performance of Australian Government programs and entities, including opportunities for improvement, by undertaking a program of independent performance audits and related reports for the information of Parliament, the Executive and the public  to contribute to improvements in Australian Government administration by identifying and promoting better practice  to contribute to the auditing profession and public sector developments nationally and internationally.

Program Expenses Expenditure includes employee expense (63%), supplier expenses (34%) and depreciation and amortisation expense (3%). 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Special Appropriations: Auditor-General remuneration and expenses - Auditor-General Act 1997 279 299 313 322 332 Annual departmental expenses: Employee expenses 19,661 19,782 19,695 19,891 20,028 Supplier expenses 10,135 10,791 11,044 11,327 11,609 Expenses not requiring appropriation in the Budget year 1 839 839 839 839 839 Total program expenses 30,914 31,711 31,891 32,379 32,808 1 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.

Program Deliverables The deliverables for the primary components of this program are listed below. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard Deliverables budget year 1 year 2 year 3 Number of performance audit reports 52 50 49 49 49 presented ¹ Number of Better Practice Guides and other 4 3 3 3 3 reports produced Number of appearances and submissions to 20 20 20 20 20 Parliamentary committees Number of engagements that contribute to public sector auditing and support developing 20 20 20 20 20 nations 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. Note: Deliverables in the 2012-13 PB Statements included the DMO Major Projects report. This deliverable is now included in program 1.1 under ‘number of other assurance reports produced’.

Program Key Performance Indicators 2012-13 2013-14 2014-15 2015-16 2016-17 Key Performance Revised Budget Forw ard Forw ard Forw ard Indicators budget target year 1 year 2 year 3 Percentage of Parliamentarians surveyed expressing satisfaction w ith ANAO services 90% 90% 90% 90% 90% directed tow ards improving Australian Government administration Percentage of recommendations included in performance audit reports agreed by audited 90% 90% 90% 90% 90% entities Percentage of Australian Government entities that acknow ledge the value added by ANAO 90% 90% 90% 90% 90% services Note: The ANAO updated its key performance indicators for 2013-14 to improve overall readability and clarify the performance being measured.

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

3.1.2 Special Accounts The ANAO does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure The ANAO does not administer any Indigenous spending programs. The ANAO does undertake financial statement audits of Indigenous entities, and of agencies administering Indigenous programs, and also undertakes performance audits of Indigenous related programs.

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to an agency in 2013-14. This includes 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 the operating appropriation provided in 2013-14.

Income statement Total income in 2013-14 is budgeted at $78.3m (2012-13: $77.7m). Revenue from Government (appropriation funding) has increased from $74.4m to $75.0m. This reflects additional funding of $0.72m in 2013-14 to cover increased audit work from the formation of new entities, partially offset by funding reductions 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 Auditor-General’s Office; and

 Own sourced revenue, of $1.1m, for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and building sublease income.

Operating expenses for 2013-14 are estimated to total $80.2m (2012-13: $77.1m).

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

At this point, no major financial transactions have been planned for 2013-14 and the total assets and liabilities values are expected to remain stable.

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

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

Capital budget statement The departmental capital budget statement shows the expected capital works program for the current and forward years. Total capital expenditure in 2013-14 is estimated to be $0.9m. In addition, the ANAO forecasts spending a further $3.1m over the forward estimates.

Administered

Schedule of budgeted income and expenses administered on behalf of Government Estimated 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 Government The estimated administered assets and liabilities relate to ongoing audit activity. No non-financial administered assets are held.

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

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 41,956 43,351 42,205 42,538 42,174 Suppliers 33,257 34,938 35,813 36,710 37,626 Depreciation and amortisation 1,907 1,907 1,907 1,907 1,907 Total expenses 77,120 80,196 79,925 81,155 81,707 LESS: OWN-SOURCE INCOME Ow n-source revenue Rendering of services 1,100 1,100 1,100 1,500 1,500 Rental income 200 200 200 200 200 Grants 2,024 2,024 2,024 2,024 2,024 Total ow n-source revenue 3,324 3,324 3,324 3,724 3,724 Total ow n-source incom e 3,324 3,324 3,324 3,724 3,724 Net cost of (contribution by) services 73,796 76,872 76,601 77,431 77,983 Revenue from Government 74,382 74,965 * 74,694 * 75,524 * 76,076 * Surplus / (deficit) attributable to the Australian Governm ent 586 (1,907) (1,907) (1,907) (1,907) Total com prehensive incom e (loss) attributable to the Australian Governm ent 586 (1,907) (1,907) (1,907) (1,907)

Note: Im pact of Net Cash Appropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations. 2,493 - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 1,907 1,907 1,907 1,907 1,907 Total Com prehensive Incom e / (loss) as per the Com prehensive Incom e Statem ent 586 (1,907) (1,907) (1,907) (1,907) 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 787 787 787 787 787 Trade and other receivables 30,113 30,113 30,113 30,113 30,113 Other 382 382 382 382 382 Total financial assets 31,282 31,282 31,282 31,282 31,282 Non-financial assets Land and buildings 4,498 3,648 2,798 1,948 1,098 Property, plant and equipment 1,569 1,614 2,025 1,785 1,536 Intangibles 1,724 1,521 1,082 1,302 1,541 Other 800 800 800 800 800 Total non-financial assets 8,591 7,583 6,705 5,835 4,975 Total assets 39,873 38,865 37,987 37,117 36,257 LIABILITIES Payables Suppliers 4,125 4,125 4,125 4,125 4,125 Operating lease 1,311 1,311 1,311 1,311 1,311 Total payables 5,436 5,436 5,436 5,436 5,436 Provisions Employee provisions 14,013 14,013 14,013 14,013 14,013 Total provisions 14,013 14,013 14,013 14,013 14,013 Total liabilities 19,449 19,449 19,449 19,449 19,449 Net assets 20,424 19,416 18,538 17,668 16,808 EQUITY* Contributed equity 8,673 9,572 10,601 11,638 12,685 Reserves 626 626 626 626 626 Retained surplus (accumulated deficit) 11,125 9,218 7,311 5,404 3,497 Total equity 20,424 19,416 18,538 17,668 16,808 * 'Equity' is the residual interest in assets after deductions of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period 11,125 626 8,673 20,424 Adjusted opening balance 11,125 626 8,673 20,424 Com prehensive incom e Surplus (deficit) for the period (1,907) - - (1,907) Total comprehensive income (1,907) - - (1,907) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - - 899 899 Sub-total transactions with owners - - 899 899 Estim ated closing balance as at 30 June 2014 9,218 626 9,572 19,416 Closing balance attributable to the Australian Governm ent 9,218 626 9,572 19,416 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 72,178 74,965 74,694 75,524 76,076 Rendering of services 1,100 1,100 1,100 1,500 1,500 Rent 200 200 200 200 200 Grants 2,024 2,024 2,024 2,024 2,024 Total cash received 75,502 78,289 78,018 79,248 79,800 Cash used Employees 41,956 43,351 42,205 42,538 42,174 Suppliers 33,257 34,938 35,813 36,710 37,626 Total cash used 75,213 78,289 78,018 79,248 79,800 Net cash from (used by) operating activities 289 - - - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 424 285 651 154 285 Purchase of intangibles 763 614 378 883 762 Total cash used 1,187 899 1,029 1,037 1,047 Net cash from (used by) investing activities (1,187) (899) (1,029) (1,037) (1,047) FINANCING ACTIVITIES Cash received Contributed equity 898 899 1,029 1,037 1,047 Total cash received 898 899 1,029 1,037 1,047 Net cash from (used by) financing activities 898 899 1,029 1,037 1,047 Net increase (decrease) in cash held - - - - - Cash and cash equivalents at the beginning of the reporting period 787 787 787 787 787 Cash and cash equivalents at the end of the reporting period 787 787 787 787 787 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 898 899 1,029 1,037 1,047 Total capital appropriations 898 899 1,029 1,037 1,047 Total new capital appropriations Provided for: Purchase of non-financial assets 898 899 1,029 1,037 1,047 Total Item s 898 899 1,029 1,037 1,047 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 1 1,187 899 1,029 1,037 1,047 TOTAL 1,187 899 1,029 1,037 1,047 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 1,187 899 1,029 1,037 1,047 Total cash used to acquire assets 1,187 899 1,029 1,037 1,047 1 Includes purchases from current and previous year’s Departmental Capital Budgets. DCB = Departmental Capital Budget. Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Buildings Other property, Computer Total plant and softw are and equipment intangibles $'000 $'000 $'000 $'000 As at 1 July 2013 Gross book value 5,556 1,766 5,542 12,864 Accumulated depreciation/amortisation and impairment 1,058 197 3,818 5,073 Opening net book balance 4,498 1,569 1,724 7,791 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 1 - 285 614 899 Total additions - 285 614 899 Other m ovem ents Depreciation/amortisation expense 850 240 817 1,907 As at 30 June 2014 Gross book value 5,556 2,051 6,156 13,763 Accumulated depreciation/amortisation and impairment 1,908 437 4,635 6,980 Closing net book balance 3,648 1,614 1,521 6,783 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OWN-SOURCE INCOME Ow n-source revenue Non-taxation revenue Rendering of services 12,088 13,310 13,500 13,600 13,600 Total non-taxation revenue 12,088 13,310 13,500 13,600 13,600 Total ow n-source revenues adm inistered on behalf of Governm ent 12,088 13,310 13,500 13,600 13,600 Total ow n-sourced incom e adm inistered on behalf of Governm ent 12,088 13,310 13,500 13,600 13,600 Net Cost of (contribution by) services 12,088 13,310 13,500 13,600 13,600 Surplus (deficit) 12,088 13,310 13,500 13,600 13,600 Total com prehensive incom e (loss) 12,088 13,310 13,500 13,600 13,600 Prepared on Australian Accounting Standards basis.

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 ard actual estimate estimate estimate estimate 2012-13 2013-14 2015-16 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Receivables 3,901 3,901 3,901 3,901 3,901 Other 2,218 2,218 2,218 2,218 2,218 Total financial assets 6,119 6,119 6,119 6,119 6,119 Total assets adm inistered on behalf of Governm ent 6,119 6,119 6,119 6,119 6,119 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 385 385 385 385 385 Total payables 385 385 385 385 385 Total liabilities adm inistered on behalf of Governm ent 385 385 385 385 385 Net assets/(liabilities) 5,734 5,734 5,734 5,734 5,734 Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Rendering of services 12,088 13,310 13,500 13,600 13,600 Total cash received 12,088 13,310 13,500 13,600 13,600 Cash used Other 12,088 13,310 13,500 13,600 13,600 Total cash used 12,088 13,310 13,500 13,600 13,600 Net cash from (used by) operating activities - - - - - Cash and cash equivalents at the beginning of the reporting period - - - - - Cash and cash equivalents at the end of the reporting period - - - - - Prepared on Australian Accounting Standards basis.

68 De par tm ent abb rev iati on Bu dge t Australian Public Service Sta te Commission me nts

71 De par USTRALIAN UBLIC ERVICE OMMISSION A P S C tm ent Section 1: Agency overview and resources 75 abb 1.1 Strategic direction statement 75 rev 1.2 Agency resource statement 76 iati 1.3 Budget measures 77 on Section 2: Outcomes and planned performance 78 Bu 2.1 Outcomes and performance information 78 dge Section 3: Explanatory tables and budgeted financial statements 89 t 3.1 Explanatory tables 89 Sta 3.2 Budgeted financial statements 90 te me nts

72 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 2013–14 the APSC will continue to focus on its five strategic priorities. These priorities reflect our statutory responsibilities, are 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.

Table 1.1: APSC Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual s ervice s 1 De partm ental appropriation Prior year departmental appropriation2 22,724 - 22,724 22,686 Departmental appropriation3 - 22,675 22,675 23,574 s31 Relevant agency receipts4 - 27,444 27,444 27,588 Total 22,724 50,119 72,843 73,848 Total ordinary annual se rvices A 22,724 50,119 72,843 73,848 Othe r s e rvice s Total other se rvices B - - - - Total available annual appropriations 22,724 50,119 72,843 73,848 Special appropriations Special appropriations lim ite d by criteria/entitle m ent Remuneration Tribunal Act 1973 - s7(13) - 60,806 60,806 59,851 Total s pe cial appropriations C - 60,806 60,806 59,851 Total appropriations e xcluding Special Accounts 22,724 110,925 133,649 133,699 Special Accounts Total Spe cial Accounts D - - - - Total res ourcing A+B+C+D 22,724 110,925 133,649 133,699 Total net re sourcing for agency 22,724 110,925 133,649 133,699 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $0.7m in 2013-14 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. Reader note: All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the APSC are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: APSC 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO There are no Budget measures relating to the APSC announced since the 2012-13 MYEFO.

Part 2: MYEFO measures not previously reported in a portfolio statement Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Measures Targeted savings - public service efficiencies 1.1 Departmental expenses (112) (139) (241) (341) (332) Total (112) (139) (241) (341) (332) Total m easures Departmental (112) (139) (241) (341) (332) Total (112) (139) (241) (341) (332) Prepared on a Government Finance Statistics (fiscal) basis.

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 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 Strategy The APSC takes a central, leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies covering:

 improving the alignment and quality of APS human capital planning and management in order to enhance APS-wide and agency capability through building 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

 fostering capability and stewardship at the APS level and assuring agency capability and effectiveness, including through processes for improved workforce planning and agency capability reviews

 strengthening the APS’s leadership and management capabilities, and building the bench strength of its leadership cohorts, through the implementation of a whole-of-APS Leadership and Core Skills Strategy.

The APSC also undertakes statutory functions under the Public Service Act 1999 (the Act), including functions to strengthen the Australian Public Service’s (APS) integrity.

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. These include encouraging agencies to develop a more consistent approach to common terms and conditions of employment for APS employees when negotiating enterprise agreements.

The APSC will continue to report publicly on the state of the APS through the 2013-14 State of the Service report which will assess APS workforce trends and capability. One of the key information sources for the report is a census of all APS employees . This will provide the APSC with improved agency benchmarking capability and the opportunity for more comprehensive analysis.

The APSC international programs will continue to develop public sector capability and capacity in partnership with developing countries, consistent with the priorities of the Australian Government’s aid program.

The APSC will continue to focus on APS people and organisational performance, investing in APS development and capability and Australian Government employment workplace relations and to support agencies through:

 a Memorandum of Understanding with relevant agencies to deliver leadership and skills development, talent management services and a whole-of-Government approach to the recruitment (and retention) of Indigenous employees

 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

 the conduct of a program of capability reviews.

Table 2.1: Budgeted Expenses for Outcome 1 2012-13 2013-14 Outcom e 1: Increased aw areness and adoption of best practice Estimated Estimated public adm inistration by the public service through leadership, actual expenses prom otion, advice and professional developm ent, draw ing on expenses research and evaluation. $'000 $'000 Program 1.1: Australian Public Service Com m ission Departmental expenses Departmental appropriation 1 50,584 49,450 Expenses not requiring appropriation in the Budget year 2 777 775 Total for Program 1.1 51,361 50,225 Program 1.2: Parliam entarians' and Judicial Office Holders' Rem uneration and Entitlem ents Administered expenses Special appropriations 59,851 60,806 Total for Program 1.2 59,851 60,806 Outcom e 1 Totals by appropriation type Administered expenses Special appropriations 59,851 60,806 Departmental expenses Departmental appropriation 1 50,584 49,450 Expenses not requiring appropriation in the Budget year 2 777 775 Total expenses for Outcom e 1 111,212 111,031 2012-13 2013-14 Average Staffing Level (num ber) 266 254 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 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.

Program 1.1: Australian Public Service Commission

Program Objectives APS people and organisation performance  to provide high quality policy advice to the Government, the Minister and the Public Service Commissioner, and employment services, on matters covered by the Public Service Act 1999  to provide an evidence base for the alignment and quality of APS human capital planning and management to enhance APS-wide and agency capability  to facilitate the continuous improvement of the approach to APS-wide workforce planning that support effective deployment and management of human capital  to manage and provide quality policy advice on the Public Service Commissioner’s statutory responsibilities in relation to SES employees, agency heads and statutory office holders  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 and contribute to ensuring consistent standards of decision-making and people management practices across the APS  to work with agencies to implement the amended Public Service Act 1999 and embed the revised APS Values, and promote public service ethics and integrity  to work with agencies to build a high performance culture across the APS  to ensure that APS agencies have access to leadership strategies to enhance agency specific capability and leadership development through guidance, networks and client engagement activities  to deliver strategies under the Indigenous Employment Strategy to improve the retention of Indigenous staff in the APS and work with agencies to continue to focus on the strategies in the APS Indigenous Pathways to Employment program  to contribute to the enhanced diversity of the APS to ensure it reflects and is responsive to the wider community and work with agencies to implement the as one – Australian Public Service Disability Employment Strategy aimed at strengthening the APS as a progressive and sustainable employer of people with disability.

Investing in APS development and capability  to reinvigorate strategic leadership capability by enhancing the capability of current and future APS leaders  to enhance the core skills of the APS workforce  to improve the efficiency and effectiveness of leadership and core skills development across the APS  to enable agencies to enhance their approach to leadership development, talent management and core skills learning and development  to contribute to the increased awareness and adoption of best practice public administration by providing leadership and professional development programs  to assist identified International governments to build public sector capability and capacity on behalf of the Australian Government. Australian Government employment workplace relations  to foster cohesive APS workforce relations to ensure employment bargaining supports a flexible and unified APS  to provide advice and support for workplace relations within Australian Government employment  to strengthen and streamline the employment bargaining framework  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 meet their respective statutory obligations.

Program Expenses Expenses will reduce in 2013-14 due to the cessation of APS Reform activities funded by appropriation from Government. Expenses are expected to reduce in 2014-15 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. Expenses are expected to reduce in 2016-17 as the five year agency funding agreements for the Strategic Centre for APS Leadership, Learning and Development expires. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Departmental appropriation 50,584 49,450 45,899 45,840 42,047 Expenses not requiring appropriation in the Budget year 1 777 775 1,164 1,165 1,166 Total program expenses 51,361 50,225 47,063 47,005 43,213 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program Deliverables The APSC’s key deliverables are: APS people and organisation performance  providing high quality policy advice to the Government, the Minister and the Public Service Commissioner on matters covered by the Public Service Act 1999  monitoring and supporting the continuous and sustainable development of agencies’ workforce planning and capability frameworks and benchmarking processes  supporting the review, inquiry and reporting functions and contribute to ensuring consistent standards of decision-making and people management practices across the APS  working with agencies to embed the APS Values that are effective in driving performance and cultural change, and promote public service ethics and integrity  providing agency capability reviews, reports and capability improvement plans  embedding an attitudinal and behavioural change to the management of performance to build a high performance culture across the APS  improving retention, over time, of Indigenous staff through strategies under the Indigenous Employment Strategy and support the as one – Australian Public Service Disability Employment Strategy aimed at strengthening the APS as a progressive and sustainable employer of people with disability  providing the publication of the State of the Service Report and other reports to assist in advising government and the APS  supporting the Ethics Advisory Service in assisting employees and agencies  meeting performance benchmarks in discharging statutory functions in respect of SES matters. Investing in APS development and capability  developing and reviewing the APS Leadership and Core Skills Strategy reflecting the current and emerging business needs of the APS, and drawing on evidence-based research and best practice  designing, developing and delivering best practice, contemporary leadership development programs and interventions  designing, developing and delivering intensive development for high potential leaders  designing contemporary, best practice learning programs and interventions relating to management and core skills

 the quality assessing of development providers  centrally procuring programs where there is a return on investment in terms of efficiency and/or cultural benefits  improving evaluation of program outcomes  thought leadership, supporting and advising support agency best practice in the areas of leadership, learning and development  providing a range of leadership and professional development programs that build knowledge and skills to improve capability  strengthening the capability of partner governments to develop and implement strategic initiatives that improve their public sector effectiveness, efficiency and the quality of services to citizens. Australian Government employment workplace relations  providing high quality advice to agencies and the Minister on workplace employment arrangements  administering enterprise bargaining arrangements  maintaining and supporting the policy and employment frameworks, including the APS-wide work level standards and classifications to ensure that these arrangements support a united APS  providing high-quality advisory and administrative support to the Remuneration Tribunal and the Defence Force Remuneration Tribunal.

83 Program Key Performance Indicators 1  APS has sufficient leadership capability to meet current and future business requirements - to become more citizen-centric, to be able to solve complex APSCproblems, Budget Statements to operate as one-APS, to anticipate challenges and implement Government programs and decisions effectively  APS agencies have access to high quality, contemporary, strategically aligned leadership and talent development programs that build the capability required in the APS  the degree to which programs improve leadership and management effectiveness  APS agencies have a range of means for accessing core skills development programs

 improved quality and consistency of core skills delivery across the APS through agency use of quality assured providers and learning designs

 APS agencies have access to thought leadership, support and advice to support their leadership development and talent management initiatives  proposals align with the Australian Government’s comprehensive Aid policy framework and enhance regional stability and improves services of Government to citizens. 1 As required by the Guidance for the Preparations of the 2013-14 Budget Statements the APSC has reviewed its KPIs and in 2013-14 their number has been reduced to more effectively concentrate on KPIs which address the APSC Outcome. The output KPIs will be reported in the APSC’s 2012-13 annual report. The KPIs are subject to further development as appropriate business systems are established to support the collection of relevant data.

2012-13 2013-14 2014-15 2015-16 2016-17 Key Performance Revised Budget Forw ard Forw ard Forw ard Indicators budget target year 1 year 2 year 3

Degree of satisfaction of Minister and agency Very good Very good Very good Very good Very good heads, as expressed through feedback about or above or above or above or above or above the quality and timeliness of services and advice provided by the APSC.

Number of review s, excluding promotion 185 185 185 185 185 review s, finalised on behalf of the Merit Protection Commissioner. Percentage of review s conducted on behalf 70% 70% 70% 70% 70% of the Merit Protection Commissioner completed w ithin published timeframes. Number of responses to w histleblow ing 15 15 15 15 15 reports made.

Percentage of w histleblow ing reports 70% 70% 70% 70% 70% acknow ledged and assessed w ithin 6 w eeks, w ith any further investigations conducted promptly. Percentage of high level use of and 75% 75% 75% 75% 75% satisfaction w ith the State of the Service Report and other research and evaluation reports by the SES, agencies and other clients. Percentage of responding surveyed 85% 85% 85% 85% 85% participants that attended a Commission program agreed that the program improved their know ledge and skills. 84 Level of satisfaction of the: • President of the Defence Force Very good Very good Very good Very good Very good Remuneration Tribunal w ith the quality and or above or above or above or above or above timeliness of the services provided by the Secretariat • President of the Remuneration Tribunal Very good Very good Very good Very good Very good w ith the quality and timeliness of the or above or above or above or above or above services provided by the Secretariat. APSC Budget Statements

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

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

Program Expenses The 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.

2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Special Appropriations: Remuneration Tribunal Act 1973 - s7(13) 59,851 60,806 61,963 63,141 64,404 Total program expenses 59,851 60,806 61,963 63,141 64,404

Program Deliverables The 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 Key Performance Indicators

2012-13 2013-14 2014-15 2015-16 2016-17 Key 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%

3.1.1 Movement of Administered funds between years APSC does not have any movement of administered funds between years.

3.1.2 Special Accounts APSC does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure Table 3.1.3: Australian Government Indigenous Expenditure (AGIE) Appropriations Other Total Program Bill Bill Special Total No. 1 No. 2 appro appro $'000 $'000 $'000 $'000 $'000 $'000 Australian Public Service Com m ission Outcom e 1 Departmental 2013-14 738 - - 738 1,472 2,210 1.1 Departmental 2012-13 870 - - 870 1,344 2,214 1.1 Total outcome 2013-14 738 - - 738 1,472 2,210 Total outcome 2012-13 870 - - 870 1,344 2,214 Total AGIE 2013-14 738 - - 738 1,472 2,210 Total AGIE 2012-13 870 - - 870 1,344 2,214

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14 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.

Income Statement In all Budget years the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense.

Appropriation revenue will decrease by $1.2m from $23.2m in 2012-13 to $22.0m in 2013-14 due to the termination of APS reform funding.

Appropriations will 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.

Goods and services income will reduce in 2014-15 as planned activities for the agency capability reviews are completed.

Income is expected to reduce in 2016-17 as a result of the expiration of the five year agency funding agreements for the Strategic Centre for APS Leadership, Learning and Development.

Balance Sheet Cash 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 2013-14 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 operating 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 Statements The 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.

Expenses are expected to increase each year as the Remuneration Tribunal is required by its legislation to review remuneration for Parliamentarians’ and Judicial Office Holders’ annually. In the past this review has generally led to increases in remuneration.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 31,186 29,726 28,417 28,237 25,045 Suppliers 18,859 19,141 17,230 17,314 16,721 Depreciation and amortisation 1,297 1,339 1,396 1,436 1,436 Finance costs 19 19 20 18 11 Total expenses 51,361 50,225 47,063 47,005 43,213 LESS: OWN-SOURCE INCOME Ow n-source revenue Sale of goods and rendering of services 27,383 27,444 23,878 24,323 20,312 Total ow n-source revenue 27,383 27,444 23,878 24,323 20,312 Gains Other 40 41 42 43 44 Total gains 40 41 42 43 44 Total ow n-source incom e 27,423 27,485 23,920 24,366 20,356 Net cost of (contribution by) services 23,938 22,740 23,143 22,639 22,857 Revenue from Government 23,201 22,006 22,021 21,517 21,735 Surplus (deficit) attributable to the Australian Governm ent (737) (734) (1,122) (1,122) (1,122) Total com prehensive incom e (loss) attributable to the Australian Governm ent (737) (734) (1,122) (1,122) (1,122)

Note: Im pact of Net Cash Appropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations. - - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 737 734 1,122 1,122 1,122 Total Com prehensive Incom e (loss) - as per the Com prehensive Incom e Statem ent (737) (734) (1,122) (1,122) (1,122) 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 450 450 450 450 450 Trade and other receivables 26,496 26,404 26,084 25,517 25,067 Total financial assets 26,946 26,854 26,534 25,967 25,517 Non-financial assets Land and buildings 2,655 2,301 1,969 1,707 1,435 Property, plant and equipment 1,356 1,313 1,089 870 633 Intangibles 1,026 1,403 1,470 1,426 1,413 Inventories 50 50 50 50 50 Prepayments 763 763 763 763 763 Total non-financial assets 5,850 5,830 5,341 4,816 4,294 Total assets 32,796 32,684 31,875 30,783 29,811 LIABILITIES Payables Suppliers 8,477 8,577 8,609 8,557 8,424 Operating lease incentives 1,100 934 768 602 436 Unearned revenue 6,945 6,945 6,945 6,945 6,945 Total payables 16,522 16,456 16,322 16,104 15,805 Provisions Employee provisions 6,860 6,860 6,860 6,860 6,860 Provision for restoration obligations 373 392 412 229 239 Total provisions 7,233 7,252 7,272 7,089 7,099 Total liabilities 23,755 23,708 23,594 23,193 22,904 Net assets 9,041 8,976 8,281 7,590 6,907 EQUITY* Contributed equity (300) 369 796 1,227 1,666 Reserves 1,323 1,323 1,323 1,323 1,323 Retained surplus (accumulated deficit) 8,018 7,284 6,162 5,040 3,918 Total equity 9,041 8,976 8,281 7,590 6,907 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Ope ning balance as at 1 July 2013 Balance carried forw ard from previous period 8,018 1,323 (300) 9,041 Adjusted opening balance 8,018 1,323 (300) 9,041 Com prehensive incom e Surplus (deficit) for the period (734) - - (734) Total comprehensive income (734) - - (734) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - - 669 669 Sub-total transactions with owners - - 669 669 Estim ated closing balance as at 30 June 2014 7,284 1,323 369 8,976 Closing balance attributable to the Australian Governm ent 7,284 1,323 369 8,976 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 23,201 22,006 22,021 21,517 21,735 Sale of goods and rendering of services 27,383 27,444 23,878 24,323 20,312 Other 1,978 2,140 2,136 2,411 2,215 Total cash received 52,562 51,590 48,035 48,251 44,262 Cash used Employees 31,186 29,726 28,417 28,237 25,045 Suppliers 21,013 21,214 19,138 19,333 18,742 Other 294 - - - - Total cash used 52,493 50,940 47,555 47,570 43,787 Net cash from (used by) operating activities 69 650 480 681 475 INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 205 - - - - Total cash received 205 - - - - Cash used Purchase of property, plant and equipment 193 495 305 309 312 Purchase of intangibles 672 824 602 602 602 Payment of restoration obligations 38 - - 201 - Total cash used 903 1,319 907 1,112 914 Net cash from (used by) investing activities (698) (1,319) (907) (1,112) (914) FINANCING ACTIVITIES Cash received Contributed equity 373 669 427 431 439 Total cash received 373 669 427 431 439 Net cash from (used by) financing activities 373 669 427 431 439 Net increase (decrease) in cash held (256) - - - - Cash and cash equivalents at the beginning of the reporting period 706 450 450 450 450 Cash and cash equivalents at the end of the reporting period 450 450 450 450 450 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 373 669 427 431 439 Total capital appropriations 373 669 427 431 439 Total new capital appropriations Provided for: Purchase of non-financial assets 335 669 427 431 439 Other items 38 - - - - Total item s 373 669 427 431 439 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 1 373 669 427 431 439 Funded internally from departmental resources 2 530 650 480 681 475 TOTAL 903 1,319 907 1,112 914 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 903 1,319 907 1,112 914 Total cash used to acquire assets 903 1,319 907 1,112 914 1 Does not include annual finance lease costs. Includes purchase from current and previous years' Departmental Capital Budgets (DCBs). 2 Includes current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB) and s31 relevant agency receipts (for FMA agencies only). DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Buildings Other property, Computer Total plant and softw are and equipment intangibles $'000 $'000 $'000 $'000 As at 1 July 2013 Gross book value 3,807 3,098 3,308 10,213 Accumulated depreciation/amortisation and impairment 1,152 1,742 2,282 5,176 Opening net book balance 2,655 1,356 1,026 5,037 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 1 50 445 824 1,319 Total additions 50 445 824 1,319 Other m ovem ents Depreciation/amortisation expense 404 488 447 1,339 As at 30 June 2014 Gross book value 3,857 3,543 4,132 11,532 Accumulated depreciation/amortisation and impairment 1,556 2,230 2,729 6,515 Closing net book balance 2,301 1,313 1,403 5,017 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNM ENT Employee benefits 59,851 60,806 61,963 63,141 64,404 Total expenses adm inistered on behalf of Governm ent 59,851 60,806 61,963 63,141 64,404 Net Cost of (contribution by) services (59,851) (60,806) (61,963) (63,141) (64,404) Surplus (deficit) (59,851) (60,806) (61,963) (63,141) (64,404) Total com prehensive incom e (loss) (59,851) (60,806) (61,963) (63,141) (64,404) Prepared on Australian Accounting Standards basis.

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.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash used Employees 59,851 60,806 61,963 63,141 64,404 Total cash used 59,851 60,806 61,963 63,141 64,404 Net cash from (used by) operating activities (59,851) (60,806) (61,963) (63,141) (64,404) Net increase (decrease) in cash held (59,851) (60,806) (61,963) (63,141) (64,404) Cash and cash equivalents at beginning of reporting period - - - - - Cash from Official Public Account for: - Appropriations 59,851 60,806 61,963 63,141 64,404 59,851 60,806 61,963 63,141 64,404 Cash and cash e quivalents at end of re porting period - - - - -

98 National Mental Health Commission

101 NATIONAL MENTAL HEALTH COMMISSION

Section 1: Agency overview and resources 105 1.1 Strategic direction statement 105 1.2 Agency resource statement 107 1.3 Budget measures 108 Section 2: Outcomes and planned performance 109 2.1 Outcomes and performance information 109 Section 3: Explanatory tables and budgeted financial statements 114 3.1 Explanatory tables 114 3.2 Budgeted financial statements 115

102 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 reports 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 contributes 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 continue to:  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 is 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 numerous sources, including Commonwealth and other government and non-government agencies and internationally, with a particular focus on ensuring a cross sectoral perspective and A Contributing Life framework 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 and the broader mental health sector

 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

 produce and action key operational documents including a Three Year Strategies and Actions Plan, a 12 month Work Plan, a Participation and Engagement Framework and a Communications Strategy.

The main challenge for the NMHC in 2013-14 is to build on the momentum and action of its first year, especially the commitments of A Contributing Life: the 2012 Report Card on Mental Health and Suicide Prevention and Strategies and Actions 2012-15 plan within the confines of fiscal and human resources. Commissioning research and working in collaboration with key stakeholders including those with a lived experience and their families and support people is key to the Commission’s ongoing contribution to the debate and advice to Government on mental health reform. An immediate priority is to report back to the community on progress in response to the 2012 Report Card recommendations. Future strategic priorities will be influenced by COAG’s response to the Report Card and other emerging issues.

Table 1.1: NMHC Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual se rvices 1 Departm ental appropriation Departmental appropriation2 - 3,012 3,012 2,336 s31 Relevant agency receipts3 - - - 86 Total - 3,012 3,012 2,422 Adm iniste red expe ns es Outcome 1 - 3,504 3,504 4,158 Total - 3,504 3,504 4,158 Total ordinary annual se rvices A - 6,516 6,516 6,580 Othe r s ervice s Total othe r s ervice s B - - - - Total available annual appropriations - 6,516 6,516 6,580 Spe cial appropriations Total s pecial appropriations C - - - - Total appropriations e xcluding Spe cial Accounts - 6,516 6,516 6,580 Spe cial Accounts Total Special Accounts D - - - - Total re sourcing A+B+C+D - 6,516 6,516 6,580 Total net res ourcing for age ncy - 6,516 6,516 6,580 1 Appropriation Bill (No.1) 2013-14. 2 Includes an amount of $0.03m in 2013-14 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'. 3 s31 Relevant agency receipts — estimate. Reader note: All figures are GST exclusive

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the NMHC are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Agency 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO There are no Budget measures relating to the NMHC announced since the 2012-13 MYEFO.

Part 2: MYEFO measures not previously reported in a portfolio statement Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Measures Targeted savings – public service efficiencies 1.1 Departmental expenses (11) (14) (9) (13) (12) Total (11) (14) (9) (13) (12) Total m easures Departmental (11) (14) (9) (13) (12) Total (11) (14) (9) (13) (12) Prepared on a Government Finance Statistics (fiscal) basis.

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 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 aged 16-85 years 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 commitment and to plan more

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.

107 NMHC Budget Statements effectively for the future mental health needs of the community, Australia’s first national body was established in 2012 to give mental health prominence at a national level.

The NMHC’s primary strategy to deliver results under Outcome 1 is through the ‘National Report Card on Mental Health and Suicide Prevention’ ('the Report Card'). The Report Card is 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 was published in November 2012. In December 2012 COAG welcomed the first Report Card and agreed to provide a response that would include national indicators and targets for mental health reform. An Expert Reference Group chaired by the NMHC has been established to provide advice to the Ministerial Working Group on Mental Health Reform on a set of national whole of life indicators and targets. COAG also agreed that the NMHC will report every three years to COAG on improvements and system reform.

The NMHC Work Plan sets out the key priority areas and major projects that will inform the next and future Report Cards and the NMHC’s efforts more generally.

Outcome Expense Statement Table 2.1 provides an overview of the total expenses for Outcome 1 by program.

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: Provide expert advice to the Australian 2012-13 2013-14 Governm ent and cross-sectional leadership on the Estimated Estimated policy, program s, services and system s that support actual expenses m ental health in Australia, including through expenses adm inistering the Annual National Report Card on Mental $'000 $'000 Health and Suicide Prevention, undertaking perform ance m onitoring and reporting, and engaging consum ers and carers. Program 1.1: National Mental Health Com m ission Administered expenses Ordinary annual services (Appropriation Bill No. 1) 4,158 3,504 Departmental expenses Departmental appropriation 1 2,572 2,837 Expenses not requiring appropriation in the Budget year 2 34 34 Total for Program 1.1 6,764 6,375 Outcom e 1 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Bill No. 1) 4,158 3,504 Departmental expenses Departmental appropriation 1 2,572 2,837 Expenses not requiring appropriation in the Budget year 2 34 34 Total expenses for Outcom e 1 6,764 6,375 2012-13 2013-14 Average Staffing Level (num ber) 10 13 1 Departmental appropriation refer to ‘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 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.

Program 1.1: National Mental Health Commission

Program 1.1 Objective The objectives of this program are:  to develop, collate and analyse data and reports, and in particular produce an 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, knowledge and understanding, strengthen public accountability and transparency and improve cross sectoral system performance and service outcomes  to review, publish and implement a Three Year Strategies and Actions Plan and an annual Work 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 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 Expenses The NMHC has intensified its operational activity following its establishment on 1 January 2012. A full complement of staff are now employed to meet the program objectives. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Administered appropriation 4,158 3,504 3,613 3,667 3,725 Annual departmental expenses: Departmental appropriation 2,572 2,837 2,869 2,887 2,907 Expenses not requiring appropriation in the Budget year 1 34 34 39 46 19 Total program expenses 6,764 6,375 6,521 6,600 6,651 1 Expenses not requiring appropriation in the Budget year is made up of amortisation expense and audit fees.

Program 1.1 Deliverables The NMHC 2013-14 program deliverables include:  the 2013 National Report Card on Mental Health and Suicide Prevention  2013-14 implementation of the Three Year Strategies and Actions Plan and the annual Work Plan, including major projects and commissioning of research to inform the Report Card  the Communications Strategy  establishment and implementation of 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 second annual National Report Card on Mental Health and Suicide Prevention by the end of 2013.  Implementation and review of a Three Year Strategies and Actions Plan as applied to 2013-14 and related 12 month operational Work Plan that sets key priority areas and major projects.  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.  Effectively operating Commission.

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 2013-14 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 years The NMHC does not have any movement of administered funds between years.

3.1.2 Special Accounts The NMHC does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure The 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 and has partnered with key community groups.

3.2.1 Differences in agency resourcing and financial statements The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to NMHC in 2013-14. 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.

Income Statement Revenue from Government will increase from $2.3m in 2012-13 to $2.8m in 2013-14 reflecting a transfer of funding from administered to departmental activities.

Balance Sheet The NMHC has a small liability base primarily reflecting departmental employee leave entitlements.

Administered

Schedule of budgeted income and expense administered on behalf of government Expenses administered on behalf of Government decrease from $4.2m in 2012-13 to $3.5m in 2013-14 reflecting a transfer of funds to departmental activities.

Schedule of budgeted assets and liabilities administered on behalf of government The NMHC has no administered assets or liabilities.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 1,604 1,938 1,963 1,972 1,972 Suppliers 843 924 931 940 960 Depreciation 34 34 39 46 19 Total expenses 2,481 2,896 2,933 2,958 2,951 LESS: OWN-SOURCE INCOME Ow n-source revenue Sale of goods and rendering of services 86 - - - - Total ow n-source revenue 86 - - - - Gains Other 25 25 25 25 25 Total gains 25 25 25 25 25 Total ow n-source incom e 111 25 25 25 25 Net cost of (contribution by) services 2,370 2,871 2,908 2,933 2,926

Revenue from Government 2,336 2,837 2,869 * 2,887 * 2,907 * Surplus (deficit) attributable to the Australian Governm ent (34) (34) (39) (46) (19) Total com prehensive incom e (loss) attributable to the Australian Governm ent (34) (34) (39) (46) (19)

Note: Im pact of Net Cash Apppropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation expenses previously funded through revenue appropriations - - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 34 34 39 46 19 Total Com prehensive Incom e (loss) - as per the Com prehensive Incom e Statem ent (34) (34) (39) (46) (19) 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 10 10 10 10 10 Trade and other receivables 360 435 505 603 665 Total financial assets 370 445 515 613 675 Non-financial assets Property, plant and equipment 102 93 90 78 83 Total non-fina ncial assets 102 93 90 78 83 Total assets 472 538 605 691 758 LIABILITIES Payables Suppliers 50 50 50 50 50 Total payables 50 50 50 50 50 Provisions Employee provisions 277 281 285 290 294 Other provisions - 71 138 200 258 Total provisions 277 352 423 490 552 Total liabilities 327 402 473 540 602 Net assets 145 136 132 151 156 EQUITY* Contributed equity 182 207 243 277 301 Retained surplus (accumulated deficit) (37) (71) (111) (126) (145) Total e quity 145 136 132 151 156 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Contributed Total earnings equity/ equity capital $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period (37) 182 145 Adjusted opening bala nce (37) 182 145 Com prehensive incom e Surplus (deficit) for the period (34) - (34) Total comprehensive income (34) - (34) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - 25 25 Sub-tota l transactions with owners - 25 25 Estim ated closing balance as at 30 June 2014 (71) 207 136 Closing balance attributable to the Australian Governm ent (71) 207 136 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 2,817 2,762 2,799 2,789 2,873 Sale of goods and rendering of services 86 - - - - Other 62 - - - - Total cash received 2,965 2,762 2,799 2,789 2,873 Cash used Employees 1,601 1,934 1,959 1,967 1,965 Suppliers 1,286 828 840 822 908 Total cash used 2,887 2,762 2,799 2,789 2,873 Net cash from (used by) operating activities 78 - - - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment - 25 36 34 24 Total cash used - 25 36 34 24 Net cash from (used by) investing activities - (25) (36) (34) (24) FINANCING ACTIVITIES Cash received Contributed equity - 25 36 34 24 Total cash received - 25 36 34 24 Cash used Other 78 - - - - Total cash used 78 - - - - Net cash from (used by) financing activities (78) 25 36 34 24 Net increase (decrease) in cash held - - - - - Cash and cash equivalents at the beginning of the reporting period 10 10 10 10 10 Cash and cash equivalents at the end of the reporting period 10 10 10 10 10 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) - 25 36 34 24 Total capital appropriations - 25 36 34 24 Total new capital appropriations Provided for: Purchase of non-financial assets - 25 36 34 24 Total item s - 25 36 34 24 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 1 - 25 36 34 24 TOTAL - 25 36 34 24 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases - 25 36 34 24 Total cash used to acquire assets - 25 36 34 24 1 Includes current year appropriations DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Other property, Total plant and equipment $'000 $'000 As at 1 July 2013 Gross book value 140 140 Accumulated depreciation/amortisation and impairment 38 38 Opening net book balance 102 102 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 1 25 25 Total additions 25 25 Other m ovem ents Depreciation/amortisation expense 34 34 As at 30 June 2014 Gross book value 165 165 Accumulated depreciation/amortisation and impairment 72 72 Closing net book balance 93 93 1 “Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 4,158 3,504 3,613 3,667 3,725 Total expenses adm inistered on behalf of Governm ent 4,158 3,504 3,613 3,667 3,725 Net Cost of (contribution by) services (4,158) (3,504) (3,613) (3,667) (3,725) Surplus (deficit) (4,158) (3,504) (3,613) (3,667) (3,725) Total com prehensive incom e (loss) (4,158) (3,504) (3,613) (3,667) (3,725) Prepared on Australian Accounting Standards basis.

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.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cas h us ed Suppliers 4,158 3,504 3,613 3,667 3,725 Tota l ca sh used 4,158 3,504 3,613 3,667 3,725 Ne t cas h from (use d by) ope rating activitie s (4,158) (3,504) (3,613) (3,667) (3,725) Net increase (decrea se) in cash held (4,158) (3,504) (3,613) (3,667) (3,725) Cash and cash equivalents at beginning of reporting period - - - - - Cash from Official Public Account for: - Appropriations 4,158 3,504 3,613 3,667 3,725 4,158 3,504 3,613 3,667 3,725 Cas h and cas h equivale nts at e nd of re porting period - - - - - Prepared on Australian Accounting Standards basis.

122 Office of National Assessments

125 OFFICE OF NATIONAL ASSESSMENTS

126 ONA Budget Statements

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.

Table 1.1: ONA Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual se rvices 1 De partm ental appropriation Prior year departmental appropriation2 12,980 - 12,980 13,506 Departmental appropriation3 - 33,164 33,164 31,001 Total 12,980 33,164 46,144 44,507 Total ordinary annual se rvices A 12,980 33,164 46,144 44,507 Othe r se rvices Total othe r s e rvice s B - - - - Total available annual appropriations 12,980 33,164 46,144 44,507 Spe cial appropriations Total special appropriations C - - - - Total appropriations e xcluding Special Accounts 12,980 33,164 46,144 44,507 Spe cial Accounts Total Special Account D - - - - Total res ourcing A+B+C+D 12,980 33,164 46,144 44,507 Total ne t res ourcing for agency 12,980 33,164 46,144 44,507 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $3.5m in 2013-14 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'.

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to ONA are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: ONA 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Expense m easures United Nations Security Council Term 1 all Departmental expenses 621 653 557 4 - Total 621 653 557 4 - Total expense m easures Departmental 621 653 557 4 - Total 621 653 557 4 - Capital m easures United Nations Security Council Term all Departmental capital 674 10 10 - - Total 674 10 10 - - Total capital m easures Departmental 674 10 10 - - Total 674 10 10 - - 1 The lead agency for this measure is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Foreign Affairs Portfolio. Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO measures not previously reported in a portfolio statement Program 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Measures Targeted savings - public service efficiencies all Departmental expenses (147) (187) (156) (225) (214) Total (147) (187) (156) (225) (214) Total m easures Departmental (147) (187) (156) (225) (214) Total (147) (187) (156) (225) (214) Prepared on a Government Finance Statistics (fiscal) basis.

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 Strategy The key strategies by which ONA will seek to achieve its outcome are:

 to maintain a strong customer focus by: o 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 o providing quality and timely coverage of subjects of political, strategic and economic significance to Australia o 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: o employing the best staff available, and assisting them to fulfil their potential through on-the-job training, travel and participation in staff development schemes o promoting objectivity, creativity and analytical rigour o facilitating access by staff to the broadest possible range of information and ideas through provision of highly capable information retrieval and storage systems.

 to keep Australia’s international intelligence activities under continuous review by: o leading and supporting processes and committees to coordinate the foreign and broader national security intelligence activities of Australian intelligence agencies o monitoring their performance and resourcing in relation to the government’s priorities o where appropriate, recommending measures to improve the effectiveness of Australia’s foreign intelligence effort.  to provide a supportive and stimulating work environment, ONA will: o cultivate and recognise excellence in analytical and support areas by all means, including the use of the government’s workplace reforms o encourage teamwork and close communication between management and staff at all levels o ensure prudent but imaginative use of its financial resources o promote the application of equal employment opportunity, industrial democracy, access and equity, and work 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.

Table 2.1: Budgeted Expenses for Outcome 1 2012-13 2013-14 Outcom e 1: Advancem ent of Australia's national interests Estimated Estimated through increased governm ent aw areness of international actual expenses developm e nts affecting Australia expenses $'000 $'000 Program 1.1: Assessm ent and reports Departmental expenses Departmental appropriation 1 19,723 20,751 Expenses not requiring appropriation in the Budget year 2 3,046 2,689 Total for Program 1.1 22,769 23,440 Program 1.2: Coordination and evaluation Departmental expenses Departmental appropriation 1 8,453 8,894 Expenses not requiring appropriation in the Budget year 2 1,305 1,152 Total for Program 1.2 9,758 10,046 Outcom e 1 Totals by appropriation type Departmental expenses Departmental appropriation 1 28,176 29,645 Expenses not requiring appropriation in the Budget year 2 4,351 3,841 Total e xpenses for Outcom e 1 32,527 33,486 2012-13 2013-14 Average Staffing Level (num ber) 144 148 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 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.

Program 1.1: Assessments and Reports

Program Objective Provide accurate and timely assessments and reports to the Prime Minister, senior ministers and officials.

Program Expenses The expenses for Program 1.1 are listed in the following table.

2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Assessment and reports 19,723 20,751 20,605 20,347 21,265 Expenses not requiring appropriation in the Budget year 1 3,046 2,689 2,769 2,857 2,857 Total departm ental expenses 22,769 23,440 23,374 23,204 24,122 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Program Deliverables The program deliverable includes 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.

Program 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: o close liaison with the Prime Minister’s office and with other ministers and their departments o annual review of ONA’s performance by the Department of the Prime Minister and Cabinet o regular internal review of ONA’s analytical and resource management objectives and performance o 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 as judged by clients in terms of uniqueness, timeliness and responsiveness, relevance and accuracy.

Program 1.2: Coordination and Evaluation

Program Objective The objective of this program is to advance Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

Program Expenses The expenses for Program 1.2 are listed in the following table.

2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Coordination and evaluation 8,453 8,894 8,831 8,720 9,114 Expenses not requiring appropriation in the Budget year 1 1,305 1,152 1,187 1,224 1,224 Total departm ental expenses 9,758 10,046 10,018 9,944 10,338 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Program 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 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.

3.1.1 Movement of Administered funds between years ONA does not have any movement of administered funds between years.

3.1.2 Special Accounts ONA does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure ONA does not have any Indigenous specific expenses.

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. 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 2013-14.

3.2.2 Analysis of budgeted financial statements Income Statement ONA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 and the forward years.

The retained and committed surpluses from previous years will used to continue the implementation of business critical measures.

Supplier and employee expenses have increased and from 2012-13 due to increased rent costs since relocating to new office accommodation in 2011. Employee and supplier expenses have stabilised at approximately $31.8m per year and are expected to remain at this level across forward years.

Balance Sheet The departmental balance sheet shows ONA's net asset position remaining stable.

Fit-out costs relating to the new office accommodation are capitalised against the building asset class in the balance sheet.

The main payables and provisions of ONA are expected to remain around current levels.

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

ONA's working cash balance is $0.7m in accordance with ONA's agreement with the Department of Finance and Deregulation.

Capital Budget Statement The departmental capital budget statement shows the expected capital works program for the current and forward years, including the purchase of new assets as well as replacement of exiting assets.

The statement also contains an amount appropriated for the departmental capital budget. In 2013-14 ONA will be appropriated an additional $0.67m of funding relating to the United Nations Security Council Term measure.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 19,445 20,228 20,835 21,460 22,103 Supplier expenses 9,391 9,447 8,631 7,637 8,306 Depreciation and amortisation 3,691 3,811 3,926 4,051 4,051 Total expenses 32,527 33,486 33,392 33,148 34,460 LESS: OWN-SOURCE INCOME Gains Other 660 30 30 30 30 Total gains 660 30 30 30 30 Total ow n-source incom e 660 30 30 30 30 Net cost of (contribution by) services 31,867 33,456 33,362 33,118 34,430 Revenue from Government 28,176 29,645 29,436 29,067 30,379 Surplus (deficit) attributable to the Australian Governm ent (3,691) (3,811) (3,926) (4,051) (4,051) Total com prehensive incom e (loss) attributable to the Australian Governm ent (3,691) (3,811) (3,926) (4,051) (4,051)

Note: Im pact of Net Cash Appropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue approprations - - - - - less depreciation/amortisation expenses previously funded through revenue appropriations1 3,691 3,811 3,926 4,051 4,051 Total Com prehensive Incom e / (loss) - as per the Com prehensive Incom e Statem ent (3,691) (3,811) (3,926) (4,051) (4,051) 1 From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expense of FMA Act agencies were replaced with a separate capital budget (the Department 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 700 700 700 700 700 Trade and other receivables 13,115 13,205 13,303 13,356 13,321 Total financial assets 13,815 13,905 14,003 14,056 14,021 Non-financial assets Land and buildings 20,975 19,592 18,209 16,826 15,443 Property, plant and equipment 5,524 6,308 7,883 9,354 10,891 Intangibles 2,550 2,183 1,859 1,532 1,207 Other 1,100 1,200 1,500 1,500 1,800 Total non-financial assets 30,149 29,283 29,451 29,212 29,341 Total assets 43,964 43,188 43,454 43,268 43,362 LIABILITIES Payables Suppliers 440 440 440 440 440 Other 533 533 533 533 533 Total payables 973 973 973 973 973 Provisions Employee provisions 5,397 4,914 5,312 5,365 5,630 Total provisions 5,397 4,914 5,312 5,365 5,630 Total liabilities 6,370 5,887 6,285 6,338 6,603 Net assets 37,594 37,301 37,169 36,930 36,759 EQUITY* Contributed equity 31,609 35,128 38,922 42,734 46,614 Reserves 617 617 617 617 617 Retained surplus (accumulated deficit) 5,368 1,556 (2,370) (6,421) (10,472) Total equity 37,594 37,301 37,169 36,930 36,759 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period 5,367 617 31,609 37,593 Adjusted opening balance 5,367 617 31,609 37,593 Com prehensive incom e Surplus (deficit) for the period (3,811) - - (3,811) Total comprehensive income (3,811) - - (3,811) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - - 3,519 3,519 Sub-total transactions with owners - - 3,519 3,519 Estim ated closing balance as at 30 June 2014 1,556 617 35,128 37,301 Closing balance attributable to the Australian Governm ent 1,556 617 35,128 37,301 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 29,040 28,881 29,338 29,039 30,414 Net GST received 1,141 1,241 1,161 1,069 748 Total cash received 30,180 30,122 30,499 30,108 31,162 Cash used Employees 19,228 20,025 20,624 21,319 22,024 Suppliers 10,614 10,771 9,875 8,789 9,138 Total cash used 29,842 30,796 30,499 30,108 31,162 Net cash from (used by) operating activities 338 (674) - - - INVESTING ACTIVITIES Cash used Buildings 300 150 150 150 150 Purchase of property, plant and equipment 2,457 2,552 3,453 3,469 3,535 Purchase of intangibles 742 143 191 193 195 Total cash used 3,499 2,845 3,794 3,812 3,880 Net cash from (used by) investing activities (3,499) (2,845) (3,794) (3,812) (3,880) FINANCING ACTIVITIES Cash received Contributed equity 2,825 3,519 3,794 3,812 3,880 Total cash received 2,825 3,519 3,794 3,812 3,880 Net cash from (used by) financing activities 2,825 3,519 3,794 3,812 3,880 Net increase (decrease) in cash held (336) - - - - Cash and cash equivalents at the beginning of the reporting period 1,036 700 700 700 700 Cash and cash equivalents at the end of the reporting period 700 700 700 700 700 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 2,825 3,519 3,794 3,812 3,880 Total capital appropriations 2,825 3,519 3,794 3,812 3,880 Total new capital appropriations Represented by: Purchase of non-financial assets 3,499 2,845 3,794 3,812 3,880 Other items - 674 - - - Total item s 3,499 3,519 3,794 3,812 3,880 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 1 2,825 2,845 3,794 3,812 3,880 TOTAL 2,825 2,845 3,794 3,812 3,880 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 3,499 2,845 3,794 3,812 3,880 Total cash used to acquire assets 3,499 2,845 3,794 3,812 3,880 1 Does not include annual finance lease costs. Include purchase from current and previous year’s Departmental Capital Budgets. DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Buildings Other property, Intangibles Total plant and equipment $'000 $'000 $'000 $'000 As at 1 July 2013 Gross book value 23,603 11,228 6,886 41,717 Accumulated depreciation/amortisation and impairment 2,628 5,704 4,336 12,668 Opening net book balance 20,975 5,524 2,550 29,049 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 1 150 2,552 143 2,845 Total additions 150 2,552 143 2,845 Other m ovem ents Depreciation/amortisation expense 1,533 1,768 510 3,811 As at 30 June 2014 Gross book value 23,753 13,780 7,029 44,562 Accumulated depreciation/amortisation and impairment 4,161 7,472 4,846 16,479 Closing net book balance 19,592 6,308 2,183 28,083 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for the DCB. Prepared on Australian Accounting Standards basis.

144 Office of the Commonwealth Ombudsman

147 OCO Budget Statements

OFFICE OF THE COMMONWEALTH OMBUDSMAN

OFFICE OF THE COMMONWEALTH OMBUDSMAN Section 1: Agency overview and resources

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 assessing 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

 assessing statutory compliance by relevant agencies through inspections.

In 2013–14 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  improve quality assurance and review of complaint handling.

Table 1.1: OCO Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual s ervice s 1 De partm ental appropriation Prior year departmental appropriation2 8,674 - 8,674 7,564 Departmental appropriation3 - 18,630 18,630 18,825 s31 Relevant agency receipts4 - 2,630 2,630 2,291 Total 8,674 21,260 29,934 28,680 Total ordinary annual se rvices A 8,674 21,260 29,934 28,680 Othe r s e rvice s Total other s ervices B - - - - Total available annual appropriations 8,674 21,260 29,934 28,680 Special appropriations Total s pecial appropriations C - - - - Total appropriations e xcluding Special Accounts 8,674 21,260 29,934 28,680 Special Accounts Total Special Accounts D - - - - Total res ourcing A+B+C+D 8,674 21,260 29,934 28,680 Total ne t re s ourcing for age ncy 8,674 21,260 29,934 28,680 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $0.6m in 2013-14 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. Reader note: All figures are GST exclusive.

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 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO There are no Budget measures relating to the OCO announced since the 2012-13 MYEFO.

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

Outcome 1 Strategy The key strategies by which the OCO will seek to achieve its Outcome are to:

 provide authoritative advice on complaints-handling, good public administration, inspections and other emerging public administration issues

 invest in our capability and business processes to provide effective and efficient oversight and complaints handling

 build our capacity to be a trusted advisor on good public administration, including complaints-handling and statutory compliance assessments.

Outcome Expense Statement Table 2.1 provides an overview of the total expenses for Outcome 1 by program.

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: Fair and accountable adm inistrative action by 2012-13 2013-14 Australian Governm ent agencies by investigating Estimated Estimated com plaints, review ing adm inistrative action and actual expenses inspecting statutory com pliance by law enforcem ent expenses agencies. $'000 $'000 Program 1.1: Office of the Com m onw ealth Om budsm an Departmental expenses Departmental appropriation 1 20,726 20,652 Expenses not requiring appropriation in the Budget year 2 876 876 Total for Program 1.1 21,602 21,528 Outcom e 1 Totals by appropriation type Departmental expenses Departmental appropriation 1 20,726 20,652 Expenses not requiring appropriation in the Budget year 2 876 876 Total expenses for Outcom e 1 21,602 21,528 2012-13 2013-14 Average Staffing Level (num ber) 139 136 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 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.

Program 1.1: Office of the Commonwealth Ombudsman

Program Objectives The objectives of this program are to:

 contribute to the fair treatment of people by the agencies we oversight  provide an accessible, effective and targeted complaints-handling service  accurately assess agency compliance with legislation in the agency use of covert or coercive powers.

Program Expenses There are no significant changes in the level of activity or funding required for this program in 2013-14 or the forward years. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Departmental appropriation1 20,726 20,652 20,834 20,861 21,193 Expenses not requiring appropriation in the Budget year 2 876 876 886 886 995 Total program e xpense s 21,602 21,528 21,720 21,747 22,188 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 and audit fees.

Program Deliverables The program deliverables include:  identification and reporting of significant and systemic problems in public administration including making recommendations and reporting on implementation  targeted stakeholder engagement through the provision of information and education regarding the role of the OCO  contribution to public administration through speeches, reports, submissions and best practice guides  oversight of selective covert or coercive powers used by relevant agencies.

Program Key Performance Indicators Qualitative  handling of investigated complaints meets internal and external service standards  inspections conducted and reports produced in accordance with legislative and other requirements  Ombudsman recommendations monitored for implementation within agencies. Quantitative

 investigations, reports and submissions to Parliament and Government completed and timely  inspections and reports completed within statutory timeframes.

3.1.1 Movement of Administered funds between years The OCO does not have any movement of administered funds between years.

3.1.2 Special Accounts The OCO does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure The OCO does not have any Indigenous specific expenditure.

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of the resources available to the office in 2013-14. This includes equity injections (provided as Departmental Capital Budget) and appropriation receivable. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14.

Income Statement The OCO is budgeting for a break-even operating result after adjustments for unfunded depreciation and amortisation expense in 2013-14 and the forward years.

Revenue from Government (appropriation funding) has decreased from $18.2m in 2012-13 to $18.0m in 2013-14. This reduction is the combined effect of targeted savings and changes in price and wage indices.

Supplier expenses will reduce in line with the reduced appropriation consistent with Government policy to reduce spending on items such as travel, advertising and printing.

Balance Sheet The OCO’s budgeted net asset position at 30 June 2014 will be $2.8m (2012–13: $3.0m).

Payables and provisions are expected to remain at around the current levels with the primary liability continuing to be accrued employee entitlements.

Statement of Changes in Equity The statement of changes in equity shows the expected movements in equity over the 2013–14 year. The retained earnings portion of equity will reduce as a result of the net cash appropriations not providing revenue to fund the depreciation expense. This is partially offset by an increase in contributed equity where the funding for the OCO’s departmental capital budget is recorded.

Statement of Cash Flows The OCO maintains a working cash balance of $0.2m.

Capital Budget Statement The 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 Movements The 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 2013-14 year.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 15,488 15,407 15,540 15,627 15,853 Suppliers 5,268 5,275 5,334 5,274 5,380 Depreciation and amortisation 846 846 846 846 955 Total expenses 21,602 21,528 21,720 21,747 22,188 LESS: OWN-SOURCE INCOME Ow n-source revenue Sale of goods and rendering of services 2,507 2,630 2,688 2,614 2,705 Total ow n-source revenue 2,507 2,630 2,688 2,614 2,705 Gains Other 30 30 40 40 40 Total gains 30 30 40 40 40 Total ow n-source incom e 2,537 2,660 2,728 2,654 2,745 Net cost of (contribution by) services 19,065 18,868 18,992 19,093 19,443

Revenue from Government 18,219 18,022 * 18,146 * 18,247 * 18,488 * Surplus (deficit) attributable to the Australian Governm ent (846) (846) (846) (846) (955)

Total com prehensive incom e (loss) attributable to the Australian Governm ent (846) (846) (846) (846) (955)

Note: Im pact of Net Cash Appropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations. - - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 846 846 846 846 955 Total Com prehensive Incom e / (loss) - as per the Com prehensive Incom e Statem ent (846) (846) (846) (846) (955) 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 248 248 248 248 248 Trade and other receivables 8,095 7,520 7,492 7,376 7,376 Other financial assets 107 107 107 107 107 Total financial assets 8,450 7,875 7,847 7,731 7,731 Non-financial assets Property, plant and equipment 2,280 2,191 2,096 2,018 1,755 Intangibles 281 132 148 153 246 Other non-financial assets 417 417 417 417 417 Total non-financial assets 2,978 2,740 2,661 2,588 2,418 Total assets 11,428 10,615 10,508 10,319 10,149 LIABILITIES Payables Suppliers 962 991 1,041 1,041 1,041 Lease incentives 1,656 1,465 1,274 1,103 942 Rent payable 945 1,103 1,205 1,256 1,274 Other payables 589 18 29 33 176 Total payables 4,152 3,577 3,549 3,433 3,433

Provisions Employee provisions 4,120 4,120 4,120 4,120 4,120 Other provisions 111 111 111 111 111 Total provisions 4,231 4,231 4,231 4,231 4,231 Total liabilities 8,383 7,808 7,780 7,664 7,664 Net assets 3,045 2,807 2,728 2,655 2,485 EQUITY* Contributed equity 4,345 4,953 5,720 6,493 7,278 Reserves 571 571 571 571 571 Retained surplus (accumulated deficit) (1,871) (2,717) (3,563) (4,409) (5,364) Total equity 3,045 2,807 2,728 2,655 2,485 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period (1,871) 571 4,345 3,045 Adjusted opening balance (1,871) 571 4,345 3,045 Com prehensive incom e Surplus (deficit) for the period (846) - - (846) Total comprehensive income (846) - - (846) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - - 608 608 Sub-total transactions with owners - - 608 608 Estim ated closing balance as at 30 June 2014 (2,717) 571 4,953 2,807 Closing balance attributable to the Australian Governm ent (2,717) 571 4,953 2,807 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 18,219 18,022 18,146 18,247 18,488 Sale of goods and rendering of services 2,436 2,630 2,688 2,614 2,705 Total cash received 20,655 20,652 20,834 20,861 21,193 Cash used Employees 15,432 15,450 15,540 15,627 15,859 Suppliers 5,223 5,202 5,294 5,234 5,334 Total cash used 20,655 20,652 20,834 20,861 21,193 Net cash from (used by) operating activities - - - - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 401 509 503 520 529 Purchase of intangibles 205 99 264 253 256 Total cash used 606 608 767 773 785 Net cash from (used by) investing activities (606) (608) (767) (773) (785) FINANCING ACTIVITIES Cash received Contributed equity 606 608 767 773 785 Total cash received 606 608 767 773 785 Net cash from (used by) financing activities 606 608 767 773 785 Net increase (decrease) in cash held - - - - - Cash and cash equivalents at the beginning of the reporting period 248 248 248 248 248 Cash and cash equivalents at the end of the reporting period 248 248 248 248 248 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 606 608 767 773 785 Total capital appropriations 606 608 767 773 785 Total new capital appropriations Provided for: Purchase of non-financial assets 606 608 767 773 785 Total item s 606 608 767 773 785 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB1 606 608 767 773 785 TOTAL 606 608 767 773 785 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 606 608 767 773 785 Total cash used to acquire assets 606 608 767 773 785 1 Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets. DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Other property, Computer Total plant and softw are and equipment intangibles $'000 $'000 $'000 As at 1 July 2013 Gross book value 7,006 1,908 8,914 Accumulated depreciation/amortisation and impairment 4,726 1,627 6,353 Opening net book balance 2,280 281 2,561 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services1 509 99 608 Total additions 509 99 608 Other m ovem ents Depreciation/amortisation expense 598 248 846 As at 30 June 2014 Gross book value 7,515 2,007 9,522 Accumulated depreciation/amortisation and impairment 5,324 1,875 7,199 Closing net book balance 2,191 132 2,323 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for the DCB. Prepared on Australian Accounting Standards basis.

166 Office of the Inspector-General of Intelligence and Security

167 OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY

168 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.

Table 1.1: OIGIS Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual services 1 Departm ental appropriation Prior year departmental appropriation2 1,996 - 1,996 1,838 Departmental appropriation3 - 2,248 2,248 2,180 Total 1,996 2,248 4,244 4,018 Total ordinary annual services A 1,996 2,248 4,244 4,018 Other services 4 Departm ental non-operating Equity injections 33 - 33 53 Total 33 - 33 53 Total other services B 33 - 33 53 Total available annual appropriations 2,029 2,248 4,277 4,071 Special appropriations Total special appropriations C - - - - Total appropriations excluding Special Accounts 2,029 2,248 4,277 4,071 Special Accounts Total Special Accounts D - - - - Total resourcing A+B+C+D 2,029 2,248 4,277 4,071 Total net resourcing for agency 2,029 2,248 4,277 4,071 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $0.69m in 2013-14 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 Appropriation Bill (No.2) 2013-14. Reader note: All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to OIGIS are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: OIGIS 2013-14 Budget measures Part 1: Measures announced since the 2012-13 MYEFO There are no Budget measures relating to OIGIS announced since the 2012-13 MYEFO.

OIGIS’ 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 Strategy The key strategies by which OIGIS will seek to achieve its outcome are:

 to continue 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 Minister, to inquire into an intelligence and security matter of a non-Australian Intelligence Community agency.

Outcome Expense Statement

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

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: Independent assurance for the Prim e 2012-13 2013-14 Minister, senior m inisters and Parliam ent as to w hether Estimated Estimated Australia's intelligence and security agencies act legally actual expenses and w ith propriety by inspecting, inquiring into and expenses reporting on their activities. $'000 $'000 Program 1.1: Office of the Inspector General of Intelligence and Security Departmental expenses Departmental appropriation 1 2,180 2,179 Expenses not requiring appropriation in the Budget year 2 251 131 Total for Program 1.1 2,431 2,310 Outcom e 1 Totals by appropriation type Departmental expenses Departmental appropriation 1 2,180 2,179 Expenses not requiring appropriation in the Budget year 2 251 131 Total expenses for Outcom e 1 2,431 2,310 2012-13 2013-14 Average Staffing Level (num ber) 13 12 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, IT and other services provided free of charge.

Program 1.1: Office of the Inspector-General of Intelligence and Security

Program Objective The objectives 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 Expenses The 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. 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. 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Departmental appropriation 2,180 2,179 2,197 2,211 2,240 Expenses not requiring appropriation in the Budget year 1 251 131 131 131 140 Total program expenses 2,431 2,310 2,328 2,342 2,380 1 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 Deliverables 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 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.

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 2013-14 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 years OIGIS does not have any movement of administered funds between years.

3.1.2 Special Accounts OIGIS does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure OIGIS does not have any Indigenous specific expenses.

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. This includes equity injections and appropriations receivable that are 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 2013-14.

3.2.2 Analysis of budgeted financial statements Income Statement OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 and the forward years.

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 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 Sheet The capital budget in 2013-14 includes $0.069m which has been allocated to upgrade the secure IT network system to maintain the security and currency of the system. The secure IT network represents the most significant component of OIGIS’ assets and was last upgraded during 2011-12. OIGIS’ 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.

The agency operates under a cash-level agreement with the Department of Finance and Deregulation whereby funds are only drawn down from OIGIS’ appropriation once the cash held falls below $0.2m.

OIGIS’ significant liabilities include accrued leave liabilities.

Statement of Cash Flows The 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 Statement The capital budget for 2013-14 is $0.7m.

Statement of Changes in Equity Following 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.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 1,967 1,843 1,843 1,936 1,535 Suppliers 425 454 472 393 832 Depreciation and amortisation 39 13 13 13 13 Total expenses 2,431 2,310 2,328 2,342 2,380 LESS: OWN-SOURCE INCOME Ow n-source revenue Other 85 - - - 9 Total ow n-source revenue 85 - - - 9 Gains Other 118 118 118 118 118 Total gains 118 118 118 118 118 Total ow n-source incom e 203 118 118 118 127 Net cost of (contribution by) services 2,228 2,192 2,210 2,224 2,253 Revenue from Government 2,180 2,179 2,197 2,211 2,240 Surplus (deficit) attributable to the Australian Governm ent (48) (13) (13) (13) (13) Total com prehensive incom e (loss) attributable to the Australian Governm ent (48) (13) (13) (13) (13)

Note: Im pact of Net Cash Apppropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations (9) - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 39 13 13 13 13 Total Com prehensive Incom e / (loss) - as per the Com prehensive Incom e Statem ent (48) (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 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 197 262 262 262 262 Trade and other receivables 46 28 16 16 16 Appropriations receivable 1,790 1,710 1,709 1,709 1,735 Other financial assets 2 2 2 2 2 Total financial assets 2,035 2,002 1,989 1,989 2,015 Non-financial assets Property, plant and equipment 108 184 210 223 236 Total non-financial assets 108 184 210 223 236 Total assets 2,143 2,186 2,199 2,212 2,251 LIABILITIES Payables Suppliers 20 7 7 7 7 Total payables 20 7 7 7 7 Provisions Employee provisions 808 808 808 808 834 Total provisions 808 808 808 808 834 Total liabilities 828 815 815 815 841 Net assets 1,315 1,371 1,384 1,397 1,410 EQUITY* Contributed equity 447 516 542 568 594 Reserves 7 7 7 7 7 Retained surplus (accumulated deficit) 861 848 835 822 809 Total equity 1,315 1,371 1,384 1,397 1,410 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period 861 7 447 1,315 Adjusted opening balance 861 7 447 1,315 Com prehensive incom e Surplus (deficit) for the period (13) - - (13) Total comprehensive income (13) - - (13) Transactions w ith ow ners Contributions by owners Departmental Capital Budget (DCBs) - - 69 69 Sub-total transactions with owners - - 69 69 Estim ated closing balance as at 30 June 2014 848 7 516 1,371 Closing balance attributable to the Australian Governm ent 848 7 516 1,371 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 2,251 2,372 2,320 2,331 2,343 Other 113 - - - - Total cash received 2,364 2,372 2,320 2,331 2,343 Cash used Employees 1,947 1,843 1,843 1,936 1,535 Suppliers 417 462 476 395 808 Total cash used 2,364 2,305 2,319 2,331 2,343 Net cash from (used by) operating activities - 67 1 - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 20 89 39 26 26 Total cash used 20 89 39 26 26 Net cash from (used by) investing activities (20) (89) (39) (26) (26) FINANCING ACTIVITIES Cash received Contributed equity 20 87 38 26 26 Total cash received 20 87 38 26 26 Net cash from (used by) financing activities 20 87 38 26 26 Net increase (decrease) in cash held - 65 - - - Cash and cash equivalents at the beginning of the reporting period 197 197 262 262 262 Cash and cash equivalents at the end of the reporting period 197 262 262 262 262 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) - 69 26 26 26 Total capital appropriations - 69 26 26 26 Total new capital appropriations Provided for: Purchase of non-financial assets - 69 26 26 26 Total Item s - 69 26 26 26 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 1 20 20 13 - - Funded by capital appropriation - DCB 2 - 69 26 26 26 TOTAL 20 89 39 26 26 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 20 89 39 26 26 Total cash used to acquire assets 20 89 39 26 26 1 Includes prior year’s Bill 2 appropriations. 2 Includes purchases from current and previous years' DCB. DCB = Departmental Capital Budget. Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset category Other property, Total plant and equipment $'000 $'000 As at 1 July 2013 Gross book value 186 186 Accumulated depreciation/amortisation and impairment 78 78 Opening net book balance 108 108 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation ordinary annual services 1 69 69 By purchase - other 20 20 Total additions 89 89 Other m ovem ents Depreciation/amortisation expense 13 13 As at 30 June 2014 Gross book value 275 275 Accumulated depreciation/amortisation and impairment 91 91 Closing net book balance 184 184 1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for the DCB. Prepared on Australian Accounting Standards basis.

184 Office of the Official Secretary to the Governor-General

187 OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL

188 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 ‘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.

Table 1.1: OOSGG Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2013-14 2013-14 2013-14 2012-13 $'000 $'000 $'000 $'000 Ordinary annual se rvice s 1 De partm ental appropriation Prior year departmental appropriation2 4,420 - 4,420 6,205 Departmental appropriation3 - 11,545 11,545 11,525 s31 Relevant agency receipts4 - 14 14 14 Total 4,420 11,559 15,979 17,744 Adm inis te re d expense s Outcome 1 - 2,071 2,071 1,976 Total - 2,071 2,071 1,976 Total ordinary annual se rvices A 4,420 13,630 18,050 19,720 Othe r se rvices De partm ental non-ope rating Equity injections 4,343 - 4,343 800 Total 4,343 - 4,343 800 Total othe r s e rvice s B 4,343 - 4,343 800 Total available annual appropriations 8,763 13,630 22,393 20,520 Spe cial appropriations Spe cial appropriations lim ite d by am ount Governor-General Act 1974 - 394 394 394 Total special appropriations C - 394 394 394 Total appropriations e xcluding Special Accounts 8,763 14,024 22,787 20,914 Spe cial Accounts Total Special Accounts D - - - - Total res ourcing A+B+C+D 8,763 14,024 22,787 20,914 Total ne t res ourcing for agency 8,763 14,024 22,787 20,914 1 Appropriation Bill (No.1) 2013-14. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $0.4m in 2013-14 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. Reader note: All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the OOSGG are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2 OOSGG 2013-14 Budget Measures Part 1: Measures announced since the 2012-13 MYEFO There are no budget measures relating to the OOSGG announced since the 2012-13 MYEFO.

Each 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 Strategy The 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.

Outcome Expense Statement Table 2.1 provides an overview of the total expenses for Outcome 1, by its program.

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: The perform ance of the Governor-General’s 2012-13 2013-14 role is facilitate d through the organisation and Estimated Estimated m anagem ent of official duties, m anagem ent and actual expenses m aintenance of the official house hold and property and expenses adm inistration of the Australian Honours and Aw ards system $'000 $'000 Program 1.1: Support for the Governor-Ge neral and Official Functions Administered expenses Ordinary annual services (Appropriation Bill No. 1) 1,976 2,071 Special appropriations 394 394 Departmental expenses Departmental appropriation 1 11,174 11,192 Expenses not requiring appropriation in the Budget year 2 443 416 Total for Program 1.1 13,987 14,073 Outcom e 1 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Bill No. 1) 1,976 2,071 Special appropriations 394 394 Departmental expenses Departmental appropriation 1 11,174 11,192 Expenses not requiring appropriation in the Budget year 2 443 416 Total expe nses for Outcom e 1 13,987 14,073 2012-13 2013-14 Average Staffing Leve l (num ber) 86 86 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 and audit fees.

Program 1.1: Support for the Governor-General and Official Functions

Program Objectives The 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.

Program Expenses 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Administered item 1,976 2,071 2,173 2,256 2,250 Special appropriations: Governor-General Act 1974 394 394 394 394 394 Annual departmental expenses: Program Support 11,174 11,192 11,257 11,339 11,490 Expenses not requiring appropriation in the Budget year 1 443 416 465 472 445 Total program expenses 13,987 14,073 14,289 14,461 14,579 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Program Components 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 1.1.1 - Component 1: Support of the Governor-General Annual administered expenses: Depreciation & amortisation 1,084 1,224 1,284 1,337 1,320 Special appropriations: Governor-General Act 1974 394 394 394 394 394 Annual departmental expenses: Program support 6,146 6,156 6,191 6,236 6,319 Total component expenses 7,624 7,774 7,869 7,967 8,033 1.1.2 - Component 2: Administration of the Australian Honours and Awards systemAnnual administered expenses: Supplier expenses 892 847 889 919 930 Annual departmental expenses: Program support 5,028 5,036 5,066 5,103 5,171 Total component expenses 5,920 5,883 5,955 6,022 6,101 Expenses not requiring appropriation in the Budget year 443 416 465 472 445 Total program expenses 13,987 14,073 14,289 14,461 14,579

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

Program Key Performance Indicators Component 1: Support of the Governor-General  The Governor-General is satisfied with the level of advice and administrative support provided that enables her 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 per cent of nominations for awards within the Order of Australia are researched and presented to the Council for the Order of Australia within 18 months of being received.  95 per cent of nominations for bravery awards are presented to the Australian Bravery Decorations Council within 6 months of being researched.  95 per cent of recommendations for long service and occupational awards are processed within 2 months of being received.  95 per cent of recommendations for distinguished, conspicuous, gallantry and meritorious awards are processed and gazetted within 6 months of being received.  95 per cent of valid and researched nominations for the National Emergency Medal - Significant Service, are presented to the next scheduled National Emergency Medal Committee meeting.  90 per cent of valid applications received for the National Emergency Medal — Sustained Service, are processed within 6 months of being received.

3.1.1 Movement of Administered funds between years The OOSGG does not have any movement of administered funds between years.

3.1.2 Special Accounts The OOSGG does not have any Special Accounts.

3.1.3 Australian Government Indigenous Expenditure The OOSGG does not have any Indigenous specific expenditure.

3.2.1 Differences in agency resourcing and financial statements The agency resourcing statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The income statement (Table 3.1.1) shows only the operating appropriation provided in 2013-14.

Income statement The OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 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 sheet The 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.

Administered

Income and expenses administered on behalf of government The OOSGG will receive administered appropriations of $2.5m in 2013–14 for the Governor-General’s salary, for support of the Australian Honours and Awards system and for administered depreciation.

Assets and liabilities administered on behalf of the government The value of land and buildings are expected to increase in 2013–14 and the forward years due to the completion of projects developed under the Vice-Regal Heritage Property Master Plan.

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) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 8,048 8,096 8,147 8,233 8,296 Suppliers 3,168 3,146 3,178 3,144 3,292 Depreciation and amortisation 401 366 397 434 407 Total expenses 11,617 11,608 11,722 11,811 11,995 LESS: OWN-SOURCE INCOME Ow n-source revenue Rental income 14 14 14 - - Total ow n-source revenue 14 14 14 - - Gains Sale of assets 4 12 30 - - Other 38 38 38 38 38 Total gains 42 50 68 38 38 Total ow n-source incom e 56 64 82 38 38 Net cost of (contribution by) services 11,561 11,544 11,640 11,773 11,957 Revenue from Government 11,160 11,178 11,243 11,339 11,550 Surplus (deficit) attributable to the Australian Governm ent (401) (366) (397) (434) (407) Total com prehensive incom e / (loss) attributable to the Australian Governm ent (401) (366) (397) (434) (407)

Note: Im pact of Net Cash Apppropriation Arrangem ents 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 Total Com prehensive Incom e / (loss) less depreciation/am ortisation expenses previously funded through revenue appropriations - - - - - plus depreciation/amortisation expenses previously funded through revenue appropriations1 401 366 397 434 407 Total Com prehensive Incom e / (loss) - as per the Com prehensive Incom e Statem ent (401) (366) (397) (434) (407) 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.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 146 146 146 146 146 Trade and other receivables 9,167 8,510 8,311 8,311 8,311 Total financial assets 9,313 8,656 8,457 8,457 8,457 Non-financial assets Land and buildings 1,040 1,680 2,779 495 495 Property, plant and equipment 875 822 835 853 902 Intangibles 195 174 148 108 63 Other non-financial assets 34 34 34 34 34 Total non-financial assets 2,144 2,710 3,796 1,490 1,494 Total assets 11,457 11,366 12,253 9,947 9,951 LIABILITIES Payables Suppliers 285 310 325 325 325 Total payables 285 310 325 325 325 Provisions Employee provisions 2,581 2,822 3,084 3,084 3,084 Total provisions 2,581 2,822 3,084 3,084 3,084 Total liabilities 2,866 3,132 3,409 3,409 3,409 Net assets 8,591 8,234 8,844 6,538 6,542 EQUITY* Contributed equity 7,318 7,327 8,334 6,462 6,873 Reserves 107 107 107 107 107 Retained surplus (accumulated deficit) 1,166 800 403 (31) (438) Total equity 8,591 8,234 8,844 6,538 6,542 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14) Retained Asset Contributed Total earnings revaluation equity/ equity reserve capital $'000 $'000 $'000 $'000 Opening balance as at 1 July 2013 Balance carried forw ard from previous period 1,166 107 7,318 8,591 Adjusted opening balance 1,166 107 7,318 8,591 Com prehensive incom e Surplus (deficit) for the period (366) - - (366) Total comprehensive income (366) - - (366) Transactions w ith ow ners Distributions to owners Restructuring - - (2,927) (2,927) Contributions by owners Equity Injection - Appropriation - - 2,568 2,568 Departmental Capital Budget (DCBs) - - 368 368 Sub-total transactions with owners - - 9 9 Estim ated closing balance as at 30 June 2014 800 107 7,327 8,234 Closing balance attributable to the Australian Governm ent 800 107 7,327 8,234 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 11,551 11,834 11,448 11,350 11,556 Sale of goods and rendering of services 14 14 14 - - Net GST received 328 306 263 314 329 Total cash received 11,893 12,154 11,725 11,664 11,885 Cash used Employees 7,817 7,855 7,885 8,233 8,296 Suppliers 3,094 3,083 3,135 3,117 3,260 Net GST paid 316 306 261 317 323 Total cash used 11,227 11,244 11,281 11,667 11,879 Net cash from (used by) operating activities 666 910 444 (3) 6 INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 27 89 54 - - Total cash received 27 89 54 - - Cash used Purchase of property, plant and equipment 2,085 3,915 1,885 409 417 Purchase of computer softw are and intangibles 80 20 20 - - Total cash used 2,165 3,935 1,905 409 417 Net cash from (used by) investing activities (2,138) (3,846) (1,851) (409) (417) FINANCING ACTIVITIES Cash received Contributed equity 1,165 2,936 1,407 412 411 Total cash received 1,165 2,936 1,407 412 411 Net cash from (used by) financing activities 1,165 2,936 1,407 412 411 Net increase (decrease) in cash held (307) - - - - Cash and cash equivalents at the beginning of the reporting period 453 146 146 146 146 Cash and cash equivalents at the end of the reporting period 146 146 146 146 146 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 NEW CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 365 367 405 409 417 Total capital appropriations 365 367 405 409 417 Total new capital appropriations Provided for: Purchase of non-financial assets 365 367 405 409 417 Total Item s 365 367 405 409 417 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 1 800 2,568 1,000 - - Funded by capital appropriation - DCB 2 365 367 405 409 417 Funded internally from departmental resources 3 1,000 1,000 500 - - TOTAL 2,165 3,935 1,905 409 417 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 2,165 3,935 1,905 409 417 Total cash used to acquire assets 2,165 3,935 1,905 409 417 1 Includes both current and prior Bill 2 appropriations and special capital appropriations. 2 Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets. 3 Includes the following sources of funding: current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB), donations and contributions, gifts, internally developed assets, s31 relevant agency receipts (for FMA agencies only), proceeds from the sale of assets. DCB = Departmental Capital Budget Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2013-14) Asset Category Buildings Other property, Computer Total plant and softw are and equipment intangibles $'000 $'000 $'000 $'000 As at 1 July 2013 Gross book value 1,040 1,606 742 3,388 Accumulated depreciation/amortisation and impairment - 731 547 1,278 Opening net book balance 1,040 875 195 2,110 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets By purchase - appropriation equity 1 3,567 - - 3,567 By purchase - appropriation ordinary annual services 2 - 349 20 369 Total additions 3,567 349 20 3,936 Other m ovem ents Depreciation/amortisation expense - 325 41 366 Disposals 3 From disposal of entities or operations (including restructuring) 2,927 187 - 3,114 Other - (110) - (110) Total other m ovem ents 2,927 402 41 3,370 As at 30 June 2014 Gross book value 1,680 1,768 762 4,210 Accumulated depreciation/amortisation and impairment - 946 588 1,534 Closing net book balance 1,680 822 174 2,676 1 "Appropriation equity" refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No.2) 2013-14, including CDABs. 2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses. 3 Net proceeds may be returned to the OPA. Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 892 847 889 919 930 Personal benefits 394 394 394 394 394 Depreciation and amortisation 1,084 1,224 1,284 1,337 1,320 Total expenses adm inistered on behalf of Governm ent 2,370 2,465 2,567 2,650 2,644 LESS: OWN-SOURCE INCOME Ow n-source revenue Non-taxation revenue Sale of goods and rendering of services 20 20 20 20 20 Total non-taxation revenue 20 20 20 20 20 Total ow n-source revenues adm inistered on behalf of Governm ent 20 20 20 20 20 Net Cost of (contribution by) services (2,350) (2,445) (2,547) (2,630) (2,624) Surplus (deficit) (2,350) (2,445) (2,547) (2,630) (2,624) Total com prehensive incom e (loss) (2,350) (2,445) (2,547) (2,630) (2,624) Prepared on Australian Accounting Standards basis.

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 ard actual estimate estimate estimate estimate 2012-13 2013-14 2015-16 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 1 1 1 1 1 Trade and other receivables 74 74 74 74 74 Total financial assets 75 75 75 75 75 Non-financial assets Land and buildings 85,321 87,122 86,345 87,402 86,182 Property, plant and equipment 1,633 1,615 1,588 1,478 1,378 Inventories 1,498 1,498 1,498 1,498 1,498 Total non-financial assets 88,452 90,235 89,431 90,378 89,058 Total assets adm inistered on behalf of Governm ent 88,527 90,310 89,506 90,453 89,133 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 4 4 4 4 4 Total payables 4 4 4 4 4 Total liabilities adm inistered on behalf of Governm ent 4 4 4 4 4 Net assets/(liabilities) 88,523 90,306 89,502 90,449 89,129 Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received 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 892 847 889 919 930 Total cash used 1,286 1,241 1,283 1,313 1,324 Net cash from (used by) operating activities (1,266) (1,221) (1,263) (1,293) (1,304) Net increase (decrease) in cash held (1,266) (1,221) (1,263) (1,293) (1,304) Cash and cash equivalents at beginning of reporting period 1 1 1 1 1 Cash from Official Public Account for: - Appropriations 1,286 1,241 1,283 1,313 1,324 1,287 1,242 1,284 1,314 1,325 Cash to Official Public Account for: - Appropriations (20) (20) (20) (20) (20) (20) (20) (20) (20) (20) Cash and cash equivalents at end of reporting period 1 1 1 1 1 Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of Administered Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2012-13 2013-14 2014-15 2015-16 2016-17 $'000 $'000 $'000 $'000 $'000 PURCHASE OF NON-FINANCIAL ASSETS Funded internally from departmental resources1 1,880 3,007 480 2,284 - TOTAL 1,880 3,007 480 2,284 - RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total accrual purchases 1,880 3,007 480 2,284 - less s32 / restructuring 1,880 3,007 480 2,284 - Total cash used to acquire assets - - - - - 1 Includes the following sources of funding: current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB), donations and contributions, gifts, internally developed assets, s31 relevant agency receipts (for FMA agencies only), proceeds from the sale of assets. Prepared on Australian Accounting Standards basis.

Table 3.2.11: Statement of Administered Asset Movements (2013-14) Asset Category Land Buildings Other property, Total plant and equipment $'000 $'000 $'000 $'000 As at 1 July 2013 Gross book value 62,000 26,240 1,855 90,095 Accumulated depreciation/amortisation and impairment - 2,919 222 3,141 Opening net book balance 62,000 23,321 1,633 86,954 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent assets From acquisition of entities or (including restructuring) - 2,927 80 3,007 Total additions - 2,927 80 3,007 Other m ovem ents Depreciation/amortisation expense - 1,126 98 1,224 As at 30 June 2014 Gross book value 62,000 29,167 1,935 93,102 Accumulated depreciation/amortisation and impairment - 4,045 320 4,365 Closing net book balance 62,000 25,122 1,615 88,737 Prepared on Australian Accounting Standards basis.

213 Glossary

215 Glossary

GLOSSARY

Accumulated The aggregate depreciation recorded for a particular depreciation depreciating asset. Actual available The actual available appropriation indicates the total appropriation appropriations available to the agency for 2012-13 as at the 2013-14 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. Appropriation Acts These appropriation Acts provide for matters that are No 1 & 3 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.

216 Glossary

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 The principal operating fund from which money is Fund 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 Net cash appropriation arrangements involve the Budget (DCB) 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. 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.

217 Glossary

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 Details of the current year‘s estimated final figures as expenses 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 Expenses not involving a cash flow impact are not appropriation in the Budget included within the calculation of an appropriation. An year 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 The FMA Act sets out the financial management, Accountability Act 1997 accountability and audit obligations of agencies (FMA Act) (including departments) that are financially part of the Commonwealth (and form part of the General Government Sector). Forward estimates The three years following the Budget year. For example if period 2013-14 is the Budget year, 2014-15 is forward year 1, 2015-16 is forward year 2 and 2016-17 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.

218 Glossary

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 The MYEFO provides an update of the government’s Fiscal Outlook (MYEFO) 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. ‘Movement of funds’ A ‘movement of funds’ process is carried out twice each between years 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.

219 Glossary

Official Public Account The OPA is the Australian Government‘s central bank (OPA) 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. 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, s. 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 An amount of money appropriated by a particular Act of (including standing Parliament for a specific purpose and number of years. appropriations) 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.

220 Acronyms

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

COAG Council of Australian Governments

DCB Departmental Capital Budget

FMA Financial Management and Accountability

FOI Freedom of Information

G20 Group of 20 Meeting

GFS Government Finance Statistics

MOU Memorandum of Understanding

NMHC National Mental Health Commission

OCO Office of the Commonwealth Ombudsman

OIGIS Office of the Inspector-General of Intelligence and Security

ONA Office of National Assessment

221 Acronyms

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