Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of the department’s finances for the 2020-21 budget year, including the impact of budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Explanatory notes and analysis of budgeted financial statements

Recent parliaments have seen a significant increase in the department’s workload, particularly of Senate committees. Senate select and joint select committees stand outside of the Senate's standing committee system. The establishment and workload of select committees is determined by the Senate and, when small in number, the support is absorbed by the existing standing committee secretariats.

The department's funding was rebased in the 2017-18 Budget, with reference to the elevated levels of committee and legislative activity experienced in the 44th Parliament and the early part of the 45th Parliament. That activity included a moderate number of select committees. The establishment of select committees in the current Parliament far exceeds the levels on which the department's funding was based. The increased level of activity, without affecting the level of support available to legislation and references committees, is not sustainable.

The department welcomes the supplementation of $2.2m for 2020-21 to support the unprecedented levels of ongoing select committee activity during the financial year. If the number and duration of committees established by the Senate continues at this level, the department will seek additional resources over the forward estimates to ensure the requirements of the Senate and senators can continue to be met.

3.2. Budgeted financial statements tables

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June
	2019-20 Estimated actual $'000'	2020-21 Budget $'000'	2021-22 Forward estimate $'000'	2022-23 Forward estimate $'000'	2023-24 Forward estimate $'000'
EXPENSES
Employee benefits	21,613	23,437	21,319	21,530	21,746
Suppliers	4,564	5,006	4,876	4,743	4,672
Depreciation and amortisation (a)	156	197	200	190	185
Losses from asset sales	69	-	-	-	-
Total expenses	26,402	28,640	26,395	26,463	26,603
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services	450	450	450	450	450
Total own-source revenue	450	450	450	450	450
Gains
Resources received free of charge	2,217	2,204	2,247	2,292	2,337
Total gains	2,217	2,204	2,247	2,292	2,337
Total own-source income	2,670	2,645	2,697	2,742	2,787
Net cost of services	(23,732)	(25,986)	(23,698)	(23,721)	(23,816)
Revenue from Government	23,452	25,810	23,519	23,539	23,631
Deficit attributable to the Australian Government	(280)	(176)	(179)	(182)	(185)
Total comprehensive loss	(280)	(176)	(179)	(182)	(185)
Total comprehensive loss attributable to the Australian Government	(280)	(176)	(179)	(182)	(185)
Note: Impact of net cash appropriation arrangements
	2019-21 Estimated actual $'000	2021-22 Budget $'000	2022-23 Forward estimate $'000	2023-24 Forward estimate $'000	2024-25 Forward estimate $'000
Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations, depreciation on ROU, principal repayments on leased assets	(134)	-	-	-	-
less: depreciation/amortisation expenses previously funded through revenue appropriations	146	176	179	182	185
less: depreciation/amortisation expenses for ROU (a)	11	21	21	8	-
add: principal repayments on leased assets (a)	11	21	21	8	-
Total comprehensive loss - as per the statement of comprehensive income	(280)	(176)	(179)	(182)	(185)

Prepared on Australian Accounting Standards basis.
(a) Applies leases under AASB 16 Leases

Table 3.2: Budgeted departmental balance sheet (as at 30 June)
	2019-20 Estimated actual $'000	2020-21 Budget $'000	2021-22 Forward estimate $'000	2022-23 Forward estimate $'000	2023-24 Forward estimate $'000
ASSETS
Financial assets
Cash and cash equivalents	153	153	153	153	153
Trade and other receivables	12,478	12,478	12,478	12,478	12,478
Total financial assets	12,631	12,631	12,631	12,631	12,631
Non-financial assets
Property, plant and equipment	2,054	2,213	2,490	2,747	2,994
Right of use	50	33	6	-	-
Intangibles	847	197	147	107	77
Inventories	130	130	130	130	130
Other non-financial assets	239	239	239	235	235
Total non-financial assets	3,320	2,812	3,012	3,219	3,436
Total assets	15,951	15,443	15,643	15,850	16,067
LIABILITIES
Payables
Suppliers	94	94	94	94	94
Other payables	467	467	467	467	467
Total Payables	561	561	561	561	561
Interest bearing liabilities
Leases	54	33	12	-	-
Total interest bearing liabilities	54	33	12	-	-
Provisions
Employee provisions	7,737	7,737	7,737	7,737	7,737
Total provisions	7,737	7,737	7,737	7,737	7,737
Total liabilities	8,352	8,331	8,310	8,298	8,298
Net assets	7,599	7,112	7,333	7,552	7,769
EQUITY*
Parent entity interest
Contributed equity	2,915	2,604	3,004	3,405	3,807
Reserves	11,347	11,347	11,347	11,347	11,347
Accumulated deficit	(6,663)	(6,839)	(7,018)	(7,200)	(7,385)
Total parent entity interest	7,599	7,112	7,333	7,552	7,769
Total equity	7,599	7,112	7,333	7,552	7,769

Prepared on Australian Accounting Standards basis
*Equity is the residual interest in assets after the deduction of liabilities.

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2020-21)
	Retained earnings $'000	Asset revaluation reserve $'000	Contributed equity/ captial $'000	Total equity $'000
Opening balance as at 1 July 2020
Balance carried forward from previous period	(6,663)	11,347	2,915	7,599
Adjusted opening balance	(6,663)	11,347	2,915	7,599
Comprehensive income
Deficit for the period	(179)	-	-	(179)
Total comprehensive income	(179)	-	-	(179)
of which:
Attributable to the Australian Government	(179)	-	-	(179)
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCB)	-	-	401	401
Other - non-reciprocal asset transfer			(712)	(712)
Sub-total transactions with owners	-	-	(311)	(311)
Estimated closing balance as at 30 June 2021	(6,839)	11,347	2,604	7,112
Less: non-controlling interests*				-
Closing balance attributable to the Australian Government	(6,839)	11,347	2,604	7,112

Prepared on Australian Accounting Standards basis

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
	2019-20 Estimated actual $'000	2020-21 Budget $'000	2021-22 Forward estimate $'000	2022-23 Forward estimate $'000	2023-24 Forward estimate $'000
OPERATING ACTIVITIES
Cash received
Appropriations	23,177	25,810	23,519	23,539	23,631
Sale of goods and rendering of services	537	450	450	450	450
Net GST received	156	200	263	245	233
Total cash received	23,870	26,460	24,232	24,234	24,314
Cash used
Employees	20,579	23,437	21,319	21,530	21,746
Suppliers	3,353	3,002	2,892	2,696	2,568
Total cash used	23,932	26,439	24,211	24,226	24,314
Net cash from operating activities	(62)	21	21	8	-
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment and intangibles	965	401	400	401	402
Total cash used	965	401	400	401	402
Net cash used by investing activities	(965)	(401)	(400)	(401)	(402)
FINANCING ACTIVITIES
Cash received
Contributed equity	967	401	400	401	402
Total cash received	967	401	400	401	402
Cash used
Principal payments on lease liability	11	21	21	8	-
Total cash used	11	21	21	8	-
Net cash from financing activities	956	380	379	393	402
Net increase/(decrease) in cash held	(71)	-	-	-	-
Cash and cash equivalents at the beginning of the reporting period	224	153	153	153	153
Cash and cash equivalents at the end of the reporting period	153	153	153	153	153

Table 3.5: Departmental capital budget statement (for the period ended 30 June)
	2019-20 Estimated actual $'000	2020-21 Budget $'000	2021-22 Forward estimate $'000	2022-23 Forward estimate $'000	2023-24 Forward estimate $'000
NEW CAPITAL APPROPRIATIONS
Capital budget (DCB)	401	401	400	401	402
Total new capital appropriations	401	401	400	401	402
Provided for:
Purchase of non-financial assets	401	401	400	401	402
Total items	401	401	400	401	402
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriation - DCB (a)	401	401	400	401	402
TOTAL	401	401	400	401	402
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE
Total purchases	401	401	400	401	402
Total cash used to acquire assets	401	401	400	401	402

Prepared on Australian Accounting Standards basis.
a) Includes purchases from current and previous years’ Departmental capital budgets (DCBs).

Table 3.6: Statement of departmental asset movements (Budget year 2020-21)
As at 1 July 2020
	Other property, plant and equipment $'000	Computer software and intangibles $'000	Total $'000
Gross book value	2,302	551	2,853
Gross book value - ROU assets	64	-	64
Accumulated depreciation/amortisation and impairment	(352)	(416)	(668)
Accumulated depreciation and impairment - ROU assets	(10)	-	(10)
Opening net book balance	2,104	135	2,239
Capital asset additions
Estimated expenditure on new or replacement assets
By purchase - capital budget (DCB)	289	112	401
Total additions	289	112	401
Other movements
Depreciation/amortisation expense	(126)	(50)	(176)
Depreciation/amortisation on ROU assets	(21)	-	(21)
Total other movements	(147)	(50)	(197)
As at 30 June 2021
Gross book value	2,591	663	3,254
Gross book value - ROU assets	64	-	64
Accumulated depreciation/amortisation and impairment	(378)	(466)	(844)
Accumulated depreciation and impairment - ROU assets	(31)	-	(31)
Closing net book balance	2,246	197	2,443

Prepared on Australian Accounting Standards basis.

(a) Funding provided through Appropriation (Parliamentary Departments) Bill (No.1) 2020-21 for depreciation/amortisation expenses, DCBs or other operational expenses