Chapter 1: Year in Review

Financial Performance 2014–15

Departmental Finances

In 2014–15 the Department reported a surplus on continuing operations of $9.9 million.

Revenue from the Australian Government in 2014–15 increased by $19.1 million, which includes $12.0 million credited to the Infrastructure Australia special account for the 2014–15 financial year. The special account was abolished on 1 September 2014 following the establishment of Infrastructure Australia as a new corporate Commonwealth entity. The special account funds were returned to the Australian Government through contributed equity.

Other gains in 2014–15 increased by $18.1 million, primarily due to the reversal of surplus lease provisions.

Total expenses increased by $30.2 million largely due to:

  • the establishment of the Western Sydney Unit
  • the full year effect of machinery-of-Government changes as a result of the abolition of the former Department of Regional Australia, Local Government, Arts and Sport, and
  • the write-down of assets associated with the novation of a property lease to another Australian Government entity on 1 July 2015.

The Department's commitment to financial management continues to be reflected in its financial performance and unqualified financial statements. The Department also focused on compliance with the introduction of the Public Governance, Performance and Accountability Act 2013 which replaced the Financial Management and Accountability Act 1997 from 1 July 2014.

Table 1.1 Summary of departmental financial performance and position ($m)

2010–112011–122012–132013–142014–15Change last year
Revenue from government   188.9 192.5 180.7 231.1 250.2 19.1
Other revenue   15.9 11.7 7.0 5.8 6.7 0.9
Gains   1.4 0.8 6.7 8.2 26.3 18.1
Total income   206.2 205.0 194.4 245.1 283.1 38.0
Employee and supplier expenses   202.3 202.9 189.5 230.4 252.6 22.2
Depreciation and amortisation   12.4 12.6 10.2 11.6 12.5 0.9
Other expenses   3.8 1.8 0.9 1.1 8.1 7.0
Total expenses   218.4 217.3 200.5 243.0 273.2 30.2
Surplus (Deficit) attributable to the Australian Government   (12.2) (12.3) (6.1) 2.1 9.9 7.8
Plus non-appropriated depreciation and amortisation expenses   12.4 12.6 10.2 11.6 12.5 0.9
Operating result (Loss) attributable to the agency   0.2 0.2 4.0 13.7 22.4 8.7
Financial assets A 85.6 93.9 88.0 136.0 130.8 (5.2)
Non-financial assets B 53.3 44.7 40.0 50.4 35.9 (14.5)
Liabilities C 72.0 80.4 68.9 106.8 85.9 (20.9)
Net assets = A + B - C   66.9 58.2 59.1 79.6 80.8 1.2

Asset Management

The Department manages $35.9 million of non-financial assets comprising several asset classes: land and buildings; property, plant and equipment, intangibles (software) and other non-financial assets. Of these the major investments are in land and buildings ($11.5 million) and in-house developed and purchased software ($11.6 million). The decrease in non-financial assets was mainly due to depreciation and amortisation expenses and the transfer of assets to another Australian Government entity at no cost.

The Department's capital programme is underpinned by centralised approval processes. All capital proposals are considered by the Executive. IT related projects are first submitted to the Department's Strategic Information Technology and Security Committee for consideration and recommendation to the Executive.

The Secretary issued an accountable authority instruction on asset management, and the Department documented asset policies and procedures on the management and safeguarding of assets. Asset registers are maintained and annual stock-takes are undertaken to verify their accuracy.

Administered Finances

Total administered expenditure in 2014–15 was $8.9 billion; of this $5.2 billion was appropriated directly to the Department for grants, subsidies and other administered expenses. The Treasury is appropriated directly for payments to and through states and territories for national partnership agreements.

Major expense items in 2014–15 were:

  • Infrastructure Investment Programme ($4,008.1 million)
  • Local Government Financial Assistance Grants ($3,433.0 million)
  • Payments to corporate Commonwealth entities ($357.5 million)
  • Plan for the Future ($184.7 million)
  • Infrastructure Growth Package ($143.2 million)
  • Services to Indian Ocean Territories ($125.2 million), and
  • Tasmanian Freight Equalisation Scheme ($111.9 million).

In aggregate, administered programmes were $1,112.6 million or 14.3 per cent higher than the latest budgets published in the Department's and the Treasury's 2015–16 Portfolio Budget Statements. Combined expenses in 2014–15 were higher than the prior year by $1.5 billion mainly due to the bring forward of two quarters of payments for the Local Government Financial Assistance Grants Programme.

In 2014–15, non-taxation revenue decreased by $983.3 million overall. This was due mainly to changes in the profile of funds received from the Building Australia Fund ($1,014.3 million), partially offset by an increase in receipts for the search for MH370 ($29.3 million). Taxation revenue collected on behalf of the Australian Government increased by $1.9 million.

Administered net assets increased by $540.3 million in 2014–15. This was due mainly to the provision of a loan to the ACT Government for loose fill asbestos ($732.4 million), partially offset by a reduction in the value of the investment in Airservices Australia ($227.5 million).

Table 1.2 is based on information reported in the Department's financial statements and excludes items for which the Treasury is appropriated directly.

Table 1.2 Summary of administered financial performance and position ($m)

2010–112011–122012–132013–142014–15Change last year
Taxation revenue   22.8 24.2 24.8 34.4 36.3 1.9
Non-taxation revenue   1 042.6 2 461.5 1 241.4 1 520.0 536.7 (983.3)
Gains   - - - 0.1 0.5 0.4
Total income   1 065.4 2 485.8 1 266.2 1 554.5 573.5 (981.0)
Employee and supplier expenses   26.2 21.9 18.1 100.4 124.2 23.7
Depreciation and amortisation   1.1 1.1 1.2 29.1 43.8 14.7
Grants   1 781.3 3 136.9 1 816.7 3 431.6 4 799.6 1 368.0
Subsidies   150.1 145.3 161.5 164.9 187.6 22.7
Other expenses   3.3 0.3 03 0.8 54.0 53.2
Total expenses   1 962.1 3 305.7 1 997.8 3 726.9 5 209.2 1 482.4
Financial assets A 4 302.7 4 343.4 4 496.7 4 727.8 5 326.0 598.2
Non-financial assets B 89.0 68.3 65.2 700.3 647.5 (52.8)
Liabilities C 25.6 27.4 25.3 66.5 71.6 5.1
Net assets = A + B - C   4 366.1 4 384.2 4 536.6 5 361.6 5 901.9 540.3

Grants

Information on grants awarded by the Department during the period 1 July 2014 to 30 June 2015 is available at www.infrastructure.gov.au/department/grants/.

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Last Updated: 7 December, 2015