Financial management

PM&C’s 2018–19 financial statements are presented on pages 133–207 of this report. The Auditor-General issued an unmodified audit opinion of these statements, noting that PM&C has appropriate and effective financial controls.

Activities administered on behalf of Government

In 2018–19, PM&C administered seven programs on behalf of government. Administered expenses totalled $1,705.6 million and comprised primarily grant payments ($1,281.9 million, 75.2 per cent of the total).

Administered expenditure included:

  • $1,576.0 million for Indigenous Affairs programs, of which $208.3 million was payments in relation to ABA and $53.3 million to the Indigenous Land and Sea Corporation
  • $111.1 million for payments to Corporate Commonwealth entities and companies
  • $18.5 million for Outcome 1 of which $4.8 million was payments for Office for Women programs.

Breakdown of administered expenses
Graph 3.1: Breakdown of administered expenses

Administered revenue totalled $75.2 million, and comprised primarily interest earned on the investment of funds held by the ABA and the Aboriginal and Torres Strait Islander Land Account (ATSILA) special accounts ($57.4 million, 76.3 per cent of the total).

As at 30 June 2019, PM&C’s administered assets totalled $3,619.7 million. Administered assets have decreased from prior years primarily due to the transfer of ATSILA to the Aboriginal and Torres Strait Islander Land and Sea Future Fund, to be managed in the Finance Portfolio.

Breakdown of administered assets
 

Graph 3.2: Breakdown of administered assets

As at 30 June 2019, PM&C’s administered liabilities totalled $54.8 million. This figure includes supplier and grant accruals and provision for future non-cash benefits to be provided to former Governors-General.

Departmental activities

PM&C reported an operating deficit of $26.9 million. After adjusting for unfunded depreciation and amortisation expenses and non-cash asset write-downs and impairments, PM&C recorded an operating surplus of $0.3 million.

In 2018–19 departmental expenses totalled $455.5 million.

Breakdown of expenses
Graph 3.3: Breakdown of expenses

Departmental income totalled $23.7 million and comprised sale of goods / rendering of services, resources received free of charge and asset gains. Departmental expenses have decreased from 2017–18 primarily due to ceasing taskforces and a reduction in contractor expenses.

As at 30 June 2019, PM&C had a positive net asset position of $112.9 million. Assets totalled $261.9 million. PM&C’s liabilities totalled $149.0 million as at 30 June 2019, including employee provisions, supplier accruals and lease liabilities. PM&C’s assets and liabilities are broadly in line with the prior year and budgeted position.

Breakdown of assets
Graph 3.4: Breakdown of assets

Table 3.24: Resourcing statement
    Actual available appropriation for 2018 – 19 Payments made 2018 – 19 Remaining balance 2018 – 19
   

$’000
(a)

$’000
(b)

 $’000
(a)–(b)
Departmental appropriation¹,²   537,753 442,747 95,006
Total   537,753 442,747 95,006
Administered expenses3        
Prior year administered appropriation   - -  
Outcome 1: Prime Minister and Cabinet   16,183 15,523  
Outcome 2: Indigenous   1,244,461 1,223,040  
Payments to corporate Commonwealth entities and companies4   111,105 111,105  
Total   1,371,749 1,349,668  
Total ordinary annual services A 1,909,502 1,792,415  
Other services5        
Administered expenses        
Specific payments to states, ACT, NT and local government        
Prior year administered appropriation        
Outcome 1: Prime Minister and Cabinet        
Outcome 2: Indigenous   6,536 6,536  
Total   6,536 6,536  
Departmental non-operating        
Equity injections6   14,854 7,791 7,063
Total   14,854 7,791 7,063
Administered non-operating        
Administered assets and liabilities        
Payments to corporate Commonwealthentities and companies non-operating   24,913 24,913  
Total   24,913 24,913  
Total other services B 46,303 39,240  
Total available annual appropriations and payments A+B 1,955,805 1,831,655  
Special appropriations        
Special appropriations limited by criteria/entitlement        
Aboriginal Land Rights (Northern Territory) Act 1976     430,627  
Higher Education Support Act 2003     69,135  
Special appropriations limited by amount        
Public Governance, Performance and Accountability Act 2013        
Total special appropriations C   499,762  
Special accounts7        
Opening balance   23,496    
Appropriation receipts   458,108    
Non-appropriation receipts to special accounts   2,628,945    
Payments made     3,072,771  
Total special accounts D 3,110,549 3,072,771 37,778
Total resourcing and payments        
A+B+C+D   5,066,354 5,404,188  

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities and companies through annual appropriations

   (594,126) (594,126)  
Total net resourcing and payments for PM&C   4,472,228 4,801,062  
  1. Appropriation Act (No. 1) 2018–19, including prior year departmental appropriation and section 74 retained revenue receipts, less permanent quarantines of $1.190 million and section 75 transfers of $1.237 million. For further details refer to Note 5.1 to the financial statements.
  2. Includes an amount of $12.146 million in 2018–19 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners’.
  3. Includes an amount of $1.276 million in 2018–19 for the administered capital budget; and $2.513 million of section 51 quarantines. For accounting purposes, this amount has been designated as ‘contributions by owners’.
  4. Corporate Commonwealth entities are corporate Commonwealth entities and Commonwealth companies as defined under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
  5. Appropriation Act (No. 2) 2018–19.
  6. Appropriation Act (No. 2) 2018–19 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)

Expenses for Outcome 1

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.

Table 3.25: Expenses by outcome 1

 

Budget* 2018–19

Actual Expenses 2018–19

Variation 2018–19

 

$’000
(a)

$’000
(b)

$’000
(a)–(b)

Program 1.1: Prime Minister and Cabinet

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Acts Nos 1, 3 and 5)

16,898

14,282

2,616

Special appropriations

–

–

–

Expenses not requiring appropriation in the Budget year2

2,728

4,227

(1,499)

Departmental expenses

 

 

 

Departmental appropriation1

152,267

150,974

1,293

Expenses not requiring appropriation in the Budget year2

10,349

11,072

(723)

Total for Program 1.1

182,242

180,555

1,687

Outcome 1 Totals by appropriation type

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)

16,898

14,282

2,616

Special appropriations

–

–

–

Expenses not requiring appropriation in the Budget year2

2,728

4,227

(1,499)

Departmental expenses

 

 

 

Departmental appropriation1

152,267

150,974

1,293

Expenses not requiring appropriation in the Budget year2

10,349

11,072

(723)

Total expenses for Outcome 1

182,242

180,555

(1,687)
Average staffing level (number) 609 642 (33)

* Full year budget, including any subsequent adjustment made.

  1. Departmental appropriation combines ordinary annual services (Appropriation Acts Nos 1 and 3) and Retained Revenue Receipts under section 74 of the PGPA Act.
  2. Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation expenses, impairment of receivables, make-good expense, audit fees and services provided free of charge.

Expenses for Outcome 2

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.

Table 3.25: Expenses by outcome 2

 

Budget* 2018–19

Actual Expenses 2018–19

Variation 2018–19

 

$’000
(a)

$’000
(b)

$’000
(a)–(b)

Program 2.1: Jobs, Land and Economy

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)3

658,894

620,190

38,704

Special appropriations

441,021

430,627

10,394

Special accounts

284,939

258,859

26,080

Payments to corporate entities

18,511

18,511

–

Less expenses made from appropriations credited to special accounts

(440,000)

(429,608)

(10,392)

Expenses not requiring appropriation in the Budget year2

–

1,535

(1,535)

Total for Program 2.1

963,365

900,114

63,251

Program 2.2: Children and Schooling

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)3

219,000

248,805

(29,805)

Other services (Appropriation Act No. 2)

6,536

6,536

–

Special appropriations

69,136

69,135

1

Expenses not requiring appropriation in the Budget year2

–

404

(404)

Total for Program 2.2

294,672

324,880

(30,208)

Program 2.3: Safety and Wellbeing

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)2

245,311

260,101

(14,790)

Special accounts

–

118

(118)

Payments to corporate entities

36,323

36,323

–

Expenses not requiring appropriation in the Budget year2

–

30

(30)

Total for Program 2.3

281,634

296,572

(14,938)

Program 2.4: Culture and Capability

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)2

48,396

48,165

231

Payments to corporate entities

20,388

20,388

–

Expenses not requiring appropriation in the Budget year

–

126

(126)

Total for Program 2.4

68,784

68,679

105

Program 2.5: Remote Australia Strategies

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)3

66,975

62,306

4,669

Special accounts

22,000

15,709

6,291

Payments to corporate entities

35,883

35,883

–

Less expenses made from appropriations credited to special accounts

–

(28,500)

28,500

Expenses not requiring appropriation in the Budget year2

–

(3)

3

Total for Program 2.5

124,858

85,395

39,463

Program 2.6: Evaluation and Research

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)3

12,487

11,421

1,066

Expenses not requiring appropriation in the Budget year2

–

–

–

Total for Program 2.5

12,487

11,421

1,066

Program 2.7: Program Support

 

 

 

Departmental expenses

 

 

 

Departmental appropriation1

273,341

271,296

2,045

Expenses not requiring appropriation in the Budget year3

11,103

22,181

(11,078)

Total for Program 2.6

284,444

293,477

(9,033)

Outcome 2 Totals by appropriation type

 

 

 

Administered expenses

 

 

 

Ordinary annual services (Appropriation Act No. 1)

1,251,063

1,250,988

75

Other services (Appropriation Act No. 2)

6,536

6,536

–

Special appropriations

510,157

499,762

10,395

Special accounts

306,939

274,686

32,254

Payments to corporate entities

111,105

111,105

–

Expenses not requiring appropriation in the Budget year2

–

2,092

(2,092)

Less expenses made from appropriations credited to special accounts

(440,000)

(458,108)

18,108

Departmental expenses

 

 

 

Departmental appropriation1

273,341

271,296

2,045

Expenses not requiring appropriation in the Budget year2

11,103

22,181

(11,078)

Total expenses for Outcome 2

2,030,244

1,980,538

49,706
Average staffing level (number) 1,448 1,248 200

* Full year budget, including any subsequent adjustment made.

  1. Departmental appropriation combines ordinary annual services (Appropriation Acts No. 1 and 3) and retained revenue receipts under section 74 of the PGPA Act.
  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 variances in administered Outcome 2 programs in 'Ordinary annual services' relates to the transfer of funding between programs. These transfers were approved by the Minister for Indigenous Affairs and the Minister for Finance (where required).