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Part 4.1 Financial Summary

SUMMARY OF IGIS FINANCIAL PERFORMANCE AND RESOURCES FOR OUTCOMES

The office received an unqualified audit report from the Australian National Audit Office for its 2017-18 financial statements. A summary of our financial performance follows.

The office operated within available resources in 2017-18 and ended the year with a surplus of $3,664,131. The summary of financial performance is based on the original budget figures as published in the Portfolio Budget Statements 2017-18.

Appropriation funding levels in 2017-18 increased significantly with the office receiving additional departmental funding in the Portfolio Additional Estimates Statements (PAES) totalling $3,662,000 to implement recommendations of the 2017 Independent Intelligence Review which included an expansion of the office and a change in the office's jurisdiction. Other Income also increased following a reassessment of the value of resources received free of charge by the office. The increase in Other Income was matched by a corresponding increase in Supplier Expenses so there was no impact on the overall financial outcome.

In relation to expenditure, the most significant variance against original budget figures related to employee expenses ($60,554 overspent). This variance occurred due to an increase in staffing levels associated with the additional funding.

Net equity increased from $3,161,158 in 2016-17 to $18,406,446 in 2017-18. Movements in equity included a $3,664,131 increase in retained surplus. Contributed Equity also increased from $528,126 in 2016-17 to $12,109,283 in 2017-18. Movements in Contributed Equity included capital funding of $11,585,000.

The following tables show:

Figure 4.1 – Entity Resource Statement and Resources for Outcomes 2017-18

Figure 4.2 – Expenses and Resources for Outcome 1.

IGIS has one outcome and one program.

ENTITY RESOURCE STATEMENT AND RESOURCES FOR OUTCOMES 2017-18

Figure 4.1: Entity resource statement for 2017-18

Actual available appropriation for 2017-18 $'000
(a)
Payments made 2017-18 $'000

(b)
Balance remaining 2017-18 $'000

(a) – (b)
Ordinary Annual Services
Departmental Appropriation
Prior year departmental appropriation
Departmental appropriation
S74 Relevant Agency Receipts

4,026
18,404
262

3,369
-
-

657
18,404
262
Total
22,692
3,369
19,323
Administered expenses
-
-
-
Total
-
-
-
Total ordinary annual services
A
22,692
3,369
19,323
Other services
Departmental non-operating
-
-
-
Total
-
-
-
Total other services
B
-
-
-
Total available annual appropriations
22,692
3,369
19,323
Special appropriations
-
-
-
Total special appropriations
C
-
-
-
Special accounts
-
-
-
Total special accounts
D
-
-
-
 
Total resourcing A + B + C + D
22,692
3,369
19,323
Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or payments to corporate entities through annual appropriations
-
-
-
Total net resourcing and payments for agency
22,692
3,369
19,323

 

Figure 4.2: Expenses for Outcome 1

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
Budget
2017-18 $'000
Actual expenses
2017-18 $'000
Variation
2017-18 $'000
(A)
(B)
(A)-(B)
Program 1.1: Office of the Inspector-General of Intelligence
and Security
Departmental expenses
Departmental appropriation1
3,157
6,819
(3,662)
Special appropriations
-
-
-
Special Accounts
-
-
-
Expenses not requiring appropriation in the Budget year
166
(3,456)
3,622
Total for Program 1.1
3,323
3,363
(40)
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
3,157
6,819
(3,662)
Special appropriations
-
-
-
Special Accounts
-
-
-
Expenses not requiring appropriation in the Budget year
166
(3,456)
3,622
Total expenses for Outcome 1
3,323
3,363
(40)
 
Budget
2017-18
Actual
2017-18
 
Average Staffing Level (number)
17
16
1

1 Departmental appropriation combines ordinary annual services (Appropriation Act Nos 1, 3 and 5) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

TRENDS IN FINANCE

Significant changes to the finances of the office during 2017-18 included:

  • a $3,701,000 increase in Revenue from Government
  • a $254,112 increase in Employee expenses arising largely due to recruitment activity associated with the additional funding and expansion of the office
  • a $108,447 increase in Supplier expenses. Increases in expenditure included $7,479 in stationery expenses, $36,766 in security vetting expenses, $33,488 in consultant's fees and $47,872 in notional rent charge
  • an $11,884 increase in Property, Plant and Equipment following the purchase of office equipment. This was offset by a $25,254 increase in depreciation expenses. Revised useful lives were applied to assets expected to be disposed of when the office relocates in early 2019
  • a $317,242 decrease in Other Payables largely due to outstanding redundancy payments in the previous year and a decrease in reimbursements to home agencies for seconded staff
  • a $475,841 increase in Employee Provisions due to the increasing staff numbers associated with the additional funding and the changing profile of the staff

Figure 4.3: Trends in finance

2017–18
OUTCOME 1 $
2016–17
OUTCOME 1 $
Change from
previous year
Revenue from Government
6,819,000
3,118,000
+119%
Other Income
208,854
157,705
+32%
TOTAL INCOME
7,027,854
3,275,705
Employee expenses
2,844,554
2,590,442
+10%
Supplier expenses
474,353
365,906
+30%
Other expenses
44,816
20,067
+123%
TOTAL EXPENSES
3,363,723
2,976,415
OPERATING RESULT
3,664,131
299,290
Financial assets
A
19,476,805
4,030,721
+383%
Non-financial assets
B
56,468
89,400
-37%
Liabilities
C
1,126,827
958,963
+18%
NET ASSETS = A + B - C
18,406,446
3,161,158
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