The Department's 2016–17 financial statements are presented from page 80 of this report. The Auditor-General issued an unmodified audit opinion of these statements, noting that the Department has appropriate and effective financial controls.
Activities administered on behalf of government
In 2016–17, the Department administered six programs. Administered expenses totaled $1,663.9 million and comprised primarily of grant payments ($1,347.4 million, 81 per cent). Administered expenditure included:
- $1,356.4 million for Indigenous affairs programs
- $144.8 million for payments in relation to the Aboriginals Benefit Account (ABA)
- $51.8 million for payments in relation to the Aboriginal and Torres Strait Islander Land Account (ATSILA)
- $3.5 million for Office for Women programs.
Administered revenue totaled $108.2 million and comprised primarily of interest earned on the investment of funds held by the ABA special account and the ATSILA special account ($74.5 million, 68.9 per cent). Administered revenue is seven per cent higher than in 2015–16 due to a small increase in interest earnings and the return of grant funding.
As at 30 June 2017, the Department's administered assets totaled $4,876.8 million, including special account investments in term deposits and investments in PM&C portfolio entities. Administered assets have increased 6.8 per cent from 2015–16 largely due to an increase in investments in portfolio entities as a result of a revaluation by the Indigenous Land Corporation and sale of property by the Indigenous Business Australia which increased their net asset positions.
As at 30 June 2017, the Department's administered liabilities totaled $63.5 million, including supplier and grant accruals and provision for future non-cash benefits to former Governors-General. Administered liabilities have increased 10 per cent since 2015–16 due to the timing of grant payments.
Departmental activities
The Department reported a technical operating deficit of $20.6 million. After adjusting for unfunded depreciation and amortisation expenses and non-cash asset write-downs and impairments, the Department recorded an operating surplus of $0.2 million. In 2016–17, the Department's expenses totaled $451.2 million.
Departmental income totaled $24.2 million and comprised of sale of goods/rendering of services, resources received free-of-charge and asset gains. Departmental income and expenses have increased from 2015–16 primarily due to the establishment of additional taskforces during 2016–17.
As at 30 June 2017, the Department had a positive net asset position. Assets totaled $236.5 million.
As at 30 June 2017, the Department's liabilities totaled $122.7 million, including employee provisions, supplier accruals and lease liabilities. The Department's assets and liabilities are in line with 2015–16 and the budgeted position.
|
Actual Available Appropriation for 2016-17 |
Payments Made |
Remaining balance |
||
|---|---|---|---|---|
|
Departmental appropriation 1, 2 |
530,789 |
439,277 |
91,512 |
|
|
Total |
530,789 |
439,277 |
91,512 |
|
|
Administered Expenses 3 |
||||
|
Prior year administered appropriation |
76,296 |
20,191 |
||
|
Outcome 1: Prime Minister and Cabinet |
23,171 |
21,678 |
||
|
Outcome 2: Indigenous |
1,348,972 |
1,303,065 |
||
|
Payments to corporate Commonwealth entities and companies 4 |
92,752 |
92,752 |
||
|
Total |
1,541,191 |
1,437,686 |
||
|
Total ordinary annual services |
A |
2,071,980 |
1,876,963 |
|
|
Other services 5 |
||||
|
Administered expenses |
||||
|
Specific payments to states, ACT, NT and local government |
||||
|
Prior year administered appropriation |
1,059 |
1,059 |
||
|
Outcome 2: Indigenous |
7,648 |
7,648 |
||
|
Total |
8,707 |
8,707 |
||
|
Departmental non-operating |
||||
|
Equity injections 6 |
16,943 |
12,334 |
4,609 |
|
|
Total |
16,943 |
12,334 |
4,609 |
|
|
Administered non-operating |
||||
|
Administered assets and liabilities |
||||
|
Payments to corporate Commonwealth entities and companies - non-operating |
36,550 |
36,550 |
||
|
Total |
36,550 |
36,550 |
||
|
Total other services |
B |
62,200 |
57,591 |
|
|
Total available annual appropriations and payments |
A+B |
2,134,180 |
1,934,554 |
|
|
Special appropriations |
||||
|
Special appropriations limited by criteria/entitlement |
||||
|
Aboriginal Land Rights (Northern Territory) Act 1976 |
178,948 |
|||
|
Higher Education Support Act 2003 |
58,584 |
|||
|
Special appropriations limited by amount |
||||
|
Public Governance, Performance and Accountability Act 2013 |
6 |
|||
|
Total special appropriations |
C |
237,538 |
||
|
Special accounts 7 |
||||
|
Opening balance |
28,610 |
|||
|
Appropriation receipts |
177,249 |
|||
|
Non-appropriation receipts to special accounts |
2,663,140 |
|||
|
Payments made |
2,999,015 |
|||
|
Total special accounts |
D |
2,868,999 |
2,999,015 |
(130,016) |
|
Total resourcing and payments |
||||
|
A+B+C+D |
5,003,179 |
5,171,107 |
||
|
Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities and companies through annual appropriations |
(306,551) |
(307,268) |
||
|
Total net resourcing and payments for PM&C |
4,696,628 |
4,863,839 |
||
Notes:
1 Appropriation Act (No.1) 2016-17 and Appropriation Act (No.3) 2016-17 including prior year departmental appropriation and section 74 retained revenue receipts, less permanent quarantines of $51.952 million. For further details refer to Note 5.1 to the financial statements.
2 Includes an amount of $11.732 million in 2016-17 for the Departmental Capital Budget. For accounting purposes this amount has been designated as 'contribution by owners'.
3 Includes $0.3 million in 2016-17 for the Administered Capital Budget, for accounting purposes it has been designated as 'contribution by owners'. It also includes a total amount of $59.9m of permanent quarantines pending formal repeal.
4 Corporate entities are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act 2013.
5 Appropriation Act (No.2) 2016-17.
6 Appropriation Act (No.2) 2016-17 equity injections and prior year equity injections.
7 Does not include 'Special public money' held in accounts like Services for Other entities and Trust Moneys Special accounts (SOETM).
|
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. |
Budget* |
Actual |
Variation |
|---|---|---|---|
|
Program 1.1: Prime Minister and Cabinet |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1, 3 and 5) |
21,955 |
20,573 |
1,382 |
|
Special accounts |
190 |
165 |
25 |
|
Special appropriations |
10 |
6 |
4 |
|
Expenses not requiring appropriation in the Budget year 2 |
131 |
169 |
(38) |
|
Departmental expenses |
|||
|
Departmental appropriation 1 |
132,863 |
139,106 |
(6,243) |
|
Expenses not requiring appropriation in the Budget year 2 |
13,837 |
5,252 |
8,585 |
|
Total for Program 1.1 |
168,986 |
165,271 |
3,715 |
|
Outcome 1 Totals by appropriation type |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) |
21,955 |
20,573 |
1,382 |
|
Special appropriations |
10 |
6 |
4 |
|
Special accounts |
190 |
165 |
25 |
|
Expenses not requiring appropriation in the Budget year 2 |
131 |
169 |
(38) |
|
Departmental expenses |
|||
|
Departmental appropriation 1 |
132,863 |
139,106 |
(6,243) |
|
Expenses not requiring appropriation in the Budget year 2 |
13,837 |
5,252 |
8,585 |
|
Total expenses for Outcome 1 |
168,986 |
165,271 |
3,715 |
| 2016-17 Budget |
2016-17 Actuals |
||
|
Average staffing level (number) |
551 |
535 |
16 |
* Full year budget, including any subsequent adjustment made.
1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and Retained Revenue Receipts under section 74 of the PGPA Act 2013.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expenses, impairment of receivables, valuation of employee provisions, make good expense, audit fees and other non-cash expense items.
| Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programs, and through measures that recognise the special place that Indigenous people hold in this Nation. |
Budget* |
Actual Expenses 2016-17 $'000 (B)
|
Variation 2016-17 $'000 (A)-(B)
|
|---|---|---|---|
|
Program 2.1: Jobs, Land and Economy |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) 3 |
700,765 |
611,874 |
88,891 |
|
Special appropriations |
171,260 |
178,948 |
(7,688) |
|
Special accounts |
224,366 |
193,601 |
30,765 |
|
Payments to corporate entities |
19,758 |
19,758 |
- |
|
Less expenses made from appropriations credited to special accounts |
(170,277) |
(177,966) |
7,689 |
|
Expenses not requiring appropriation in the Budget year 2 |
- |
1,127 |
(1,127) |
|
Total for Program 2.1 |
945,872 |
827,342 |
118,530 |
|
Program 2.2: Children and Schooling |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services |
215,264 |
291,287 |
(76,023) |
|
Other Services |
7,648 |
7,648 |
- |
|
Special appropriations |
62,013 |
58,556 |
3,457 |
|
Expenses not requiring appropriation in the Budget year 2 |
- |
6,157 |
(6,157) |
|
Total for Program 2.2 |
284,925 |
363,648 |
(78,723) |
|
Program 2.3: Safety and Wellbeing |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) 3 |
259,647 |
255,768 |
3,879 |
|
Payments to corporate entities |
37,075 |
37,075 |
- |
|
Expenses not requiring appropriation in the Budget year 2 |
- |
837 |
(837) |
|
Total for Program 2.3 |
296,722 |
293,680 |
3,042 |
|
Program 2.4: Culture and Capability |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) 3 |
58,196 |
68,003 |
(9,807) |
|
Expenses not requiring appropriation in the Budget year |
- |
369 |
(369) |
|
Total for Program 2.4 |
58,196 |
68,372 |
(10,176) |
|
Program 2.5: Remote Australia Strategies |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) 3 |
50,100 |
56,299 |
(6,199) |
|
Special accounts |
4,681 |
219 |
4,462 |
|
Payments to corporate entities |
35,919 |
35,919 |
- |
|
Less expenses made from appropriations credited to special accounts |
- |
(2,600) |
2,600 |
|
Expenses not requiring appropriation in the Budget year 2 |
- |
142 |
(142) |
|
Total for Program 2.5 |
90,700 |
89,979 |
721 |
|
Program 2.6: Program Support |
|||
|
Departmental expenses |
|||
|
Departmental appropriation 1 |
284,178 |
291,249 |
(7,071) |
|
Expenses not requiring appropriation in the Budget year 3 |
3,925 |
15,593 |
(11,668) |
|
Total for Program 2.6 |
288,103 |
306,842 |
(18,739) |
|
Outcome 2 Totals by appropriation type |
|||
|
Administered expenses |
|||
|
Ordinary Annual Services (Appropriation Act No. 1) |
1,283,972 |
1,283,231 |
741 |
|
Other Services (Appropriation Act No.2) |
7,648 |
7,648 |
- |
|
Special appropriations |
233,273 |
237,504 |
(4,231) |
|
Special accounts |
229,047 |
193,820 |
35,227 |
|
Payments to corporate entities |
92,752 |
92,752 |
- |
|
Expenses not requiring appropriation in the Budget year 2 |
- |
8,632 |
(8,632) |
|
Less expenses made from appropriations credited to special accounts |
(170,277) |
(180,566) |
10,289 |
|
Departmental expenses |
|||
|
Departmental appropriation 1 |
284,178 |
291,249 |
(7,071) |
|
Expenses not requiring appropriation in the Budget year 2 |
3,925 |
15,593 |
(11,668) |
|
Total expenses for Outcome 2 |
1,964,518 |
1,949,863 |
14,655 |
|
Total net expenses for Outcome 2 |
1,964,518 |
1,949,863 |
14,655 |
| 2016-17 Budget |
2016-17 Actuals |
||
|
Average staffing level (number) |
1,524 |
1,446 |
78 |
* Full year budget, including any subsequent adjustment made.
1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and Retained Revenue Receipts under section 74 of the PGPA Act 2013.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expenses, impairment of receivables, valuation of employee provisions, make good expense, audit fees and other non-cash expense items.
3 The variance in Administered Outcome 2 is mainly due to the transfer of funding between Program 2.1 Jobs, Land and Economy and Program 2.2 Children and Schooling. These transfers were approved by the Minister for Indigenous Affairs.
Procurement
The Department's procurement and purchasing in 2016–17 were undertaken in accordance with the principles set out in the Commonwealth Procurement Rules 2017 (CPRs).
CPRs are applied to the Department's procurement activities through the Secretary's Instructions and Financial Rules, with the provision of centralised advice on all procurement matters. These ensure that the Department undertakes competitive, non-discriminatory procurement processes; uses resources efficiently, effectively, economically and ethically and makes decisions in an accountable manner.
In 2016–17, the Department achieved its targets under the Indigenous Procurement Policy by awarding three per cent of contracts to Indigenous businesses.
All contracts of $100,000 or greater (inclusive of GST) that were let during 2016–17 provided for the Auditor-General to have access to the relevant contractor's premises.
There were no contracts in 2016–17 in excess of $10,000 (inclusive of GST) that were exempt from being reported on AusTender on the basis that they would disclose exempt matters under the FOI Act.
Information on expected procurements to be undertaken in 2017–18 through an open approach to market is published in the Department's annual procurement plan, available on the AusTender website.
Small and medium enterprises
The Department recognises the importance of paying small businesses on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury's website.
The Department supports small business participation in the government procurement market. Small and medium enterprises (SME) and small enterprise participation statistics are available on the Department of Finance website.
The Department's procurement practices support SMEs by adopting whole-of-government solutions to simplify interactions with SMEs. This includes using the Commonwealth Contracting Suite for low-risk procurements valued under $200,000.
Consultants
The Department engages consultants for specialist expertise or when independent research, review or assessment is required. Decisions to engage consultants during 2016–17 were made in accordance with the PGPA Act and related regulations, including the CPRs and relevant internal policies.
During 2016–17, 52 new consultancy contracts were entered into by the Department, with a total actual expenditure of $2.77 million. In addition, 12 ongoing consultancy contracts were active during the 2016–17 financial year, incurring a total actual expenditure of $607,311.72. Details of trends in consultancies are shown in Figure 3.12.
Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.
Advertising and market research
Under section 311A of the Commonwealth Electoral Act 1918, the Department is required to disclose payments of $13,000 or more (inclusive of GST) for advertising and market research.
During 2016–17, the Department's total expenditure for advertising and market research over the reporting threshold was $239,809.00. Further information on advertising is available in Figure 3.13 and at the PM&C website.
The Department granted Reconciliation Australia $1 million to deliver National Awareness Raising Activities for National Reconciliation Week 2017 (25 May to 3 June 2017). Advertising undertaken for this activity was consistent with the Australian Government Guidelines on Information and Advertising Campaigns by non-corporate Commonwealth entities. Details of the advertising will be published in the Reconciliation Australia annual report and on the Reconciliation Australia website.
| Consultancies | 2014–15 | 2015–16 | 2016–17 |
|---|---|---|---|
| Number of existing consultancies | 17 | 25 | 12 |
| Number of new consultancies | 33 | 47 | 52 |
| Total consultancies | 50 | 72 | 64 |
| Total expenditure | $2.40m | $2.94m | $3.38m |
| Firm | Service provided | 2016–17 Payments made in $ (incl GST) |
|---|---|---|
| Media advertising organisations | ||
|
Cox Inall Ridgeway Pty Ltd |
Market research for the Referendum Council digital platform |
77,385.00 |
|
Mitchell and Partners Australia Pty Ltd |
Advertising for recruitment and Referendum Council digital platform |
53,374.96 |
|
Teber Pty Ltd |
Recruitment advertising |
39,800.00 |
|
Australian Public Service Commission |
Advertising and recruitment services |
69,250.00 |
Asset management
The Department manages its assets in accordance with the Secretary's Instructions, relevant accounting standards and Department of Finance requirements.
PM&C administers significant strategic assets, in the form of investments, on behalf of the Australian Government for two special accounts: the ABA and the ATSILA. Both the ABA and ATSILA investment strategies are focused on cash-flow requirements, preservation of the fund and management of risks. Monies that are surplus to immediate requirements are invested under section 58 of the PGPA Act. For further details, refer to the ABA and ATSILA annual reports.
Non-compliance with finance law
No significant instances of non-compliance requiring a report to the responsible minister in accordance with the PGPA Act have been recorded in the Department for 2016–17.
Grant programs
Information on grants awarded by the Department during the period 1 July 2016 to 30 June 2017 is available on the PM&C website.