Appendix 1: Financial results
2008–09 Financial results commentary and financial statements
Introduction
The Australian National Audit Office’s operations are largely funded through parliamentary appropriations. Revenue is also received for the provision of audit-related services, rental income, grant funding and other miscellaneous sources, which under an arrangement pursuant to section 31 of the Financial Management and Accountability Act 1997, is accounted for as agency revenue and retained for use by the ANAO.
In accordance with section 14 of the Auditor-General Act 1997, we charge fees for the audit of financial statements of Commonwealth authorities and companies. The revenue received is accounted as administered funds and paid directly into Consolidated Revenue.
Overview of financial performance
The operating deficit of $1.455 million for the year ending 30 June 2009 compared to the $1.598 million surplus in 2007–08 is the net result of a 0.2% increase in revenues and a 4.9% increase in expenses. The increased level of expenses reflects the need to engage experienced contractors for direct audit work and the need for specialist technical and actuarial skills that were not available internally.
The following table provides a summary of our financial position.
Table A1.1: Summary of financial performance
2008–09 |
2007–08 |
Variance |
Variance |
|
|---|---|---|---|---|
Income Statement |
||||
Total revenue |
66,817 |
66,667 |
150 |
0.2% |
Total expenses |
68,272 |
65,069 |
3,203 |
4.9% |
Net (deficit)/surplus |
(1,455) |
1,598 |
(3,053) |
–191.1% |
Balance Sheet |
||||
Total assets |
20,118 |
21,707 |
(1,589) |
–7.3% |
Total liabilities |
13,957 |
14,098 |
(141) |
–1.0% |
Net assets |
6,161 |
7,609 |
(1,448) |
–19.0% |
Equity |
6,161 |
7,609 |
(1,448) |
–19.0% |
Agency resource statement
The agency resource statement was introduced in the 2008–09 Portfolio Budget Statements and aims to provide additional information about the various funding sources that the ANAO may draw upon during the year. Table A1.2 details the resources available to the ANAO during 2008–09.
Table A1.2: Agency resource statement, 2008–09
Actual available appropriations for 2008–09 |
Payments made |
Balance remaining |
|
|---|---|---|---|
Ordinary Annual Services |
|||
Departmental appropriation |
|||
Prior year departmental appropriation |
16,417 |
5,602 |
10,815 |
Departmental appropriation |
63,285 |
63,285 |
– |
s. 31 relevant agency receipts |
2,421 |
3,080 |
(659) |
Total ordinary annual services |
82,123 |
71,967 |
10,156 |
Special Appropriations |
|||
Auditor-General remuneration and expense—Auditor-General Act 1997, Schedule 1, sections 3 and 7 |
392 |
452 |
(60) |
Total special appropriations |
392 |
452 |
(60) |
Total resourcing and payments |
82,515 |
72,419 |
10,096 |
Note: Payments made from prior year department appropriations were for the office refurbishment and have been capitalised on the balance sheet.
Resources for outcomes
The ANAO’s total resourcing summary by outcome is set out in Table A1.3.
Table A1.3: Resources for outcomes, 2008–09
Outcome 1: Independent assessment of the performance of selected Australian Government public sector activities, including the scope for improving efficiency and administrative effectiveness |
Budget |
Actual expenses |
Variation |
|---|---|---|---|
Output Group 1: Performance Audit Services |
|||
Departmental outputs |
|||
Output 1.1—Performance Audit Services |
22,154 |
23,367 |
–1,213 |
Subtotal for Output Group 1 |
22,154 |
23,367 |
–1,213 |
Output Group 2: Information Services |
|||
Special Appropriations: |
|||
Auditor-General Act 1997, Schedule 1, |
196 |
226 |
–30 |
Departmental outputs |
|||
Output 2.1—Assistance to Parliament |
506 |
461 |
45 |
Output 2.2—National and International Representation |
611 |
616 |
–5 |
Output 2.4—Better practice guides |
1,558 |
616 |
942 |
Subtotal for Output Group 2 |
2,871 |
1,919 |
952 |
Total resources for Outcome 1 |
25,025 |
25,286 |
–261 |
Outcome 2: Independent assurance of Australian Government public sector financial reporting, administration, control and accountability |
Budget |
Actual expenses |
Variation |
|---|---|---|---|
Output Group 2: Information Services |
|||
Special Appropriations: |
|||
Auditor-General Act 1997, Schedule 1, |
196 |
226 |
–30 |
Departmental Outputs |
|||
Output 2.1—Assistance to Parliament |
95 |
75 |
20 |
Output 2.2—National and International Representation |
857 |
719 |
138 |
Output 2.3—Client Seminars |
0 |
56 |
–56 |
Subtotal for Output Group 2 |
1,148 |
1,077 |
71 |
Output Group 3: Assurance Audit Services |
|||
Departmental Outputs |
|||
Output 3.1—Financial Statement Audit Reports |
39,780 |
40,258 |
–478 |
Output 3.2—Other Assurance reports |
741 |
1,651 |
–910 |
Subtotal for Output Group 3 |
40,521 |
41,909 |
–1,388 |
Total resources for Outcome 2 |
41,669 |
42,985 |
–1,317 |
Total Outcomes 1 and 2 |
66,694 |
68,272 |
–1,578 |
Average staffing level (number) |
311 |
Reconciliation to financial statements |
||
|---|---|---|
Departmental Appropriation |
63,285 |
|
Special Appropriation |
452 |
|
Section 31 revenue |
3,080 |
|
Total revenue |
66,817 |
|
Operating deficit |
(–1,455) |