The department ended the 2015–16 financial year reporting a deficit attributable to the Australian Government of $2.038 million. The net cash position (after deducting depreciation and amortisation expenses of $0.896 million) was a deficit of $1.142 million.

There were two reasons for this result:
·       Employee benefits expenses increased due to a change to the calculation of on-costs and a decrease in the 10-year 
        Treasury (government) bond rate used to determine the present value of employee provisions.
·       The 2016–17 federal budget included a measure for supplementary funding of $1.061 million for the department for
         2015–16; however, the Supply (Parliamentary Departments) Act (No. 1) 2016–17 did not include the measure. The measure was included in Appropriation (Parliamentary Departments) Bill (No. 1) 2016–17, which had not passed the parliament before the simultaneous dissolution for the 2016 election. Under section 38(2) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015, the department was not able to recognise the supplementary funding for 2015–16 of $1.016m as revenue in the statement of comprehensive income.

Through the 2015–16 federal budget, the department was able to secure supplementary funding to support the work of committees. A total of $1.5 million was provided over three years commencing in 2014–15 and lapsing in 2016–17. The increase in funding was very welcome; however, financial resourcing pressures still remain. The decrease in the department’s own-source revenue was a result of external funding contracts from the Department of Foreign Affairs and Trade for Pacific parliamentary development programs being completed. The amount of revenue recognised in relation to these programs corresponds to the amount of expenses incurred during the financial year.

Cyclical revaluation of the heritage and cultural and plant and equipment asset classes resulted in a revaluation surplus of $0.772 million. Asset additions during the year relate to the office furniture replacement project. Replacement of furniture items in departmental offices is now complete. Replacement of items in the staff areas of members’ offices commenced in late 2015. Total liabilities increased marginally as a result of the change to the calculation of employee provisions and a decrease in the payables relating to expenses for accrued salary and wages.

The estimates for 2016–17 indicate that the department has sufficient resources to continue to support members, the House and its committees. However, the department’s budget will come under pressure again in 2017–18 and beyond if additional funding is not secured. The department will continue to innovate and keep pace with technological change in order to sustain the quality of service delivery. 

Figure 3: Financial performance, 2011–12 to 2015–16 [Text-only description]

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