Detailed analysis
A detailed analysis of our financial performance is set out below.
Operating expenses
Total operating expenses for the year ended 30 June 2007 were $63.582 million (0.9 per cent) less than for 2005–06. This decrease in costs is due mainly to audit related costs, which decreased by 10 per cent. The main reason for the decrease is due to the resignation of the Auditor-General as the auditor of Telstra Group during the year. Costs incurred until the resignation reduced the overall saving. A breakdown of total operating expenses into major expense categories is shown in Figure A2–1.
Figure A2–1: Operating expenses
Operating revenue
The increase in total operating revenues is due to the increase in independent revenues. Independent revenues increased by funds provided by the Australian Agency for International Development (AusAID) to assist with a project to develop the Indonesian Board of Audit’s performance and financial audit capacity. A breakdown of operating revenue is provided in Figure A2–2.
Figure A2–2: Operating revenue
Balance sheet summary
Our balance sheet position remains sound. The operating surplus of $2.258 million, as well as continued tight management of balance sheet items, has resulted in an improvement in the accumulated deficit and equity position, which stands at $6.016 million (2005–06: $3.604 million).
Total assets decreased due to a decreased level in infrastructure, plant and equipment. This decrease is due to continued depreciation of these assets in line with the estimated useful lives.
The decrease in liabilities was predominantly due to the continued write-off of the lease liability that was recorded to account for operating lease expenditure on a straight-line basis on the adoption of Australian Equivalents to International Financial Reporting Standards. There was a minor increase in employee entitlements in line with increases in pay rates from
our Workplace Agreement.
Administered funds financial summary
Audit fees billed to Commonwealth authorities and companies for non–discretionary audit work have decreased from 2005–06. The decrease is explained by the resignation of the Auditor-General as the auditor of Telstra Group. Table A2–2 details the administered financial results.
Table A2-2: Administered funds
Net outlays to Government
We received appropriations totalling $64.002 million (2005–06: $63.866 million) and generated $10.217 million in the sale of goods and services, the net outlay by Government was $53.785 million (2005–06: $50.713 million).