Overview
In 2022–23, the department was appropriated $23.937m by the Appropriation (Parliamentary Departments) Act (No.1) 2022–23.
The department ended the financial year with an operating loss of $1.923m (excluding asset-related adjustments). The result reflects the increased expenses (largely employee related) incurred as a result of continuing elevated level of support required for committees in the Parliament. Additional ongoing funding was agreed in the 2023–24 Budget, returning the department's budget to a sustainable level over the forward estimates.
Net results
The following table outlines a summary of financial results between 2021–22 and 2022–23:
| Statement of comprehensive income |
2022–23
($'000) |
2021–22
($'000) |
Variance
($'000) |
Variance
% |
| Total own-source revenue |
499 |
503 |
(4) |
-0.7% |
| Total revenue from government |
23,937 |
25,811 |
(1,874) |
-7.3% |
| Total expenses |
26,568 |
24,827 |
1,741 |
7.0% |
| Net surplus/(deficit)* |
(2,132) |
1,487 |
|
|
| * including asset-related adjustments |
The department's operating expenses for 2022–23 were $26.359m (excluding asset-related adjustments). The majority of the expenditure is on employee benefits ($23.805m), with the remaining ten per cent on supplier related expenses. Revenue from government in the prior year included $2.0m supplementation. A further breakdown of the proportion of expenses is shown in figure 20.
Figure 20 – Expenses by type 2022–23
Financial position
The following table outlines a summary of financial position between 2021–22 and 2022–23:
| Statement of financial position |
2022–23
($'000) |
2021–22
($'000) |
Variance
($'000) |
Variance
% |
| Total assets |
17,068 |
18,247 |
(1,179) |
-6.5% |
| Total liabilities |
8,562 |
7,874 |
688 |
8.7% |
| Equity/Net assets |
8,506 |
10,373 |
(1,867) |
-18.0% |
As at 30 June 2023, the department's net equity was $8.506m, representing $17.068m of assets offset by $8.562m of liabilities. Most of the assets and liabilities are of a financial nature, with the largest balance being appropriation and other receivables ($14.313m). The majority of the department's liabilities relate to employee provisions ($7.414m) and the remainder largely to short term payables ($1.098m) in relation to accrued salaries and trade payables. The reduction in equity relates to the deficit described above.
Entity resource statement
The entity resource statement provides additional information about the funding sources that the department had access to during the year. Appendix 1 details the resources available to the department during 2022–23 and sets out a summary of total expenses for Outcome 1.
Sustainability
The department's financial performance for the last five years is demonstrated below:
Figure 21 – Financial performance 2018–19 to 2022–23
The demand for the department's services is driven by the needs of the Senate and senators. The 2022–23 financial year has seen the continuation of the high level of committee activity and the return to pre-pandemic levels of committee travel. These factors have put intense pressure on the department's budget and resulted in a significant operating loss in the 2022–23 financial year. The loss has been funded from cash reserves generated through prior year unspent appropriations.
Additional ongoing funding of approximately $2.2m per year was agreed in the 2023–24 Budget returning the department to a financially sound footing for future financial years. In addition, the department continues to have sufficient cash reserves to meet short and long term liabilities and is financially sustainable.