Summary of IGIS financial performance and resources for outcomes (PGPA Act)

OIGIS received an unqualified audit report from the Australian National Audit Office for its 2014–15 financial statements. A summary of the office's financial performance can be found on the following page.

The office operated within available resources in 2014–15 and ended the year with a surplus of $585 131.

During 2014–15 the office received significant additional appropriation funding ($840 000) to provide additional resources to enable the office to maintain effective oversight of the activities of the intelligence agencies.

In relation to expenditure, the most significant budget variance related to employee expenses ($480 557 underspend). This occurred because the office received additional funding for new staff part way through the reporting period and although recruitement action commenced promptly there was an inevitable delay in recruiting. Other variances included expenses linked to the additional funding including international travel ($24 000 underspend) and consultants ($30 000 underspend). Variances in ongoing items included security clearances for ongoing staff members ($5 000 underspend) and potential software licence fees ($13 000 underspend).

Net equity increased from $1 653 529 in 2013–14 to $2 253 786 in 2014–15. Movements in equity included a $585 131 increase in retained surplus. Contributed Equity also increased from $463 000 in 2013–14 to $478 126 in 2014–15. Movements in Contributed Equity included capital funding of $26 000 offset by a reduction of $10 874 following the lapsing of unspent 2010–11 and 2011–12 departmental capital budgets.

The following tables can be found in Annex 3.

Table 3.1 - Agency Resource Statement and Resource for Outcomes 2014–15, and

Table 3.2 Expenses and Resources for Outcome 1.

OIGIS has one outcome and one program.

Trends in finances

Significant changes to the finances of the office during 2014–15 included:

• An $824 000 increase in revenue from government. This consisted of $840 000 additional funding received to enhance the agency's ability to oversight the activities of the intelligence agencies in the context of those agencies receiving significant new powers and additional funding. This increase was offset by a $16 000 reduction in base funding compared to the previous year.
• A $144 525 decrease in own-source revenue primarily due to the significant inquiry funding received in the previous year ($139 000).
• A $272 384 increase in employee expenses largely due to additional staff being recruited with the additional funding.
• A $52 249 increase in supplier expenses. Increases in expenditure included $14 000 in staff training expenses, $11 000 increase in translation expenses and $5 000 increase in transcription services.
• A $49 905 increase in other payables due to outstanding reimbursements to home agencies for seconded staff.