The following tables summarise economic indicators for the department. The first relates to departmental funds and the other relates to administered funds.
Table 14: Economic indicators–departmental funds
Indicator
|
2011–12 $’000
|
2010–11 $’000
|
% change
|
Operating statement
|
Total expenses
|
686 320
|
539 748
|
27%
|
Total own-source income
|
91 273
|
76 399
|
19%
|
Net cost of service
|
595 047
|
463 349
|
28%
|
Economic viability
|
Total assets
|
510 359
|
518 163
|
(2%)
|
Total liabilities
|
552 465
|
425 572
|
30%
|
Table 15: Economic indicators–administered funds
Indicator
|
2011–12 $’000
|
2010–11 $’000
|
% change
|
Operating statement
|
Total expenses
|
888 298
|
1 279 903
|
(31%)
|
Total own-source income
|
78 293
|
34 440
|
127%
|
Net cost of service
|
810 005
|
1 245 463
|
(35%)
|
Economic viability
|
Total assets
|
3 044 922
|
2 436 300
|
25%
|
Total liabilities
|
42 049
|
54 911
|
(23%)
|
This section highlights the department’s financial performance during 2011–12 for both departmental and administered activities.
Financial performance of departmental activities
The department’s departmental financial performance for 2011–12 is summarised in the table below. Departmental resourcing includes assets, liabilities, revenues and expenses that the department controls directly and uses to produce outcomes on behalf of the government.
Table 16: Departmental financial performance
Departmental
|
2011–12 Actuals $’000
|
2010–11 Actuals $’000
|
Variance $’000
|
Outcome 1
|
Income
|
140 433
|
188 746
|
(48 313)
|
Expenses
|
143 791
|
196 169
|
(52 378)
|
Surplus/(Deficit)
|
(3358)
|
(7423)
|
4065
|
Outcome 2
|
Income
|
49 893
|
48 963
|
930
|
Expenses
|
51 149
|
53 331
|
(2182)
|
Surplus/(Deficit)
|
(1256)
|
(4368)
|
3112
|
Outcome 3
|
Income
|
132 182
|
112 691
|
19 491
|
Expenses
|
246 005
|
153 807
|
92 198
|
Surplus/(Deficit)
|
(113 823)
|
(41 116)
|
(72 707)
|
Outcome 4
|
Income
|
134 308
|
76 545
|
57 763
|
Expenses
|
136 456
|
80 550
|
55 906
|
Surplus/(Deficit)
|
(2148)
|
(4005)
|
1857
|
Outcome 5
|
Income
|
100 708
|
54 430
|
46 278
|
Expenses
|
108 919
|
55 891
|
53 028
|
Surplus/(Deficit)
|
(8211)
|
(1 461)
|
(6750)
|
Total departmental
|
Income
|
557 524
|
481 375
|
76 149
|
Expenses
|
686 320
|
539 748
|
146 572
|
Surplus/(deficit)
|
(128 796)
|
(58 373)
|
(70 423)
|
Notes:
2011–12 Actuals Actual income and expenses for 2011–12.
2010–11 Actuals Actual income and expenses for 2010–11.
Variance The difference between the actual results for 2011–12 and 2010–11 (i.e. 2011–12 Actuals minus 2010–11 Actuals).
Table 17: Comparison of departmental financial performance with previous year
Outcome
|
Income
|
Expenses
|
Outcome 1
|
Income decreased in 2011–12 by $48.31 million mainly due to:
-
the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $55.85 million (2010–11: $52.70 million)
-
an increase of $5.30 million in funding for the Clean Energy Future-Biodiversity Fund
-
an increase of $3.14 million in funding for the Caring for our Country–Environmental Stewardship Program
-
an increase of $1.88 million in funding for the National Wildlife Corridors Plan.
|
Expenses decreased in 2011–12 by $52.38 million mainly due to:
-
the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $59.91 million (2010–11: $59.65 million), partially offset by the increase in expenditure relating to the Clean Energy Future–Biodiversity Fund, Environmental Stewardship Program and the National Wildlife Corridors Plan.
|
Outcome 2
|
Income increased in 2011–12 by $0.93 million mainly due to:
-
a $3.49 million reduction in income following the transfer of the Housing Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the transfer of the Housing Supply Policy function to the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011
-
an increase in funding of $1.89 million to support the Sustainable Population Policy function assumed from the Department of the Treasury, due to a restructuring of administrative arrangements on 14 September 2010
-
an increase of $2.01 million for the funding of the Sustainable Australia–Suburban Jobs initiative.
|
Expenses decreased by $2.18 million in 2011–12 mainly due to:
-
a $6.70 million reduction in expenses following the transfer of the Housing Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the transfer of the Housing Supply Policy function to the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011
-
a $2.63 million increase in expenses relating to the Sustainable Population Policy function assumed from the Department of the Treasury, due to a restructuring of administrative arrangements on 14 September 2010.
|
Outcome 3
|
Income increased in 2011–12 by $19.49 million mainly due to increased services provided to the Department of Immigration and Citizenship.
|
Expenses increased in 2011–12 by $92 million mainly due to:
-
an increase of $56.40 million in relation to the Antarctic make good provision and base restitution liability, primarily resulting from the reduction in the Australian Government bond rate used in the long term forecast
-
a $27.15 million increase in costs resulting from increased operational activity
-
increased depreciation costs of $2.48 million on buildings and other infrastructure.
|
Outcome 4
|
Income increased in 2011–12 by $57.76 million mainly due to:
-
an increase of $49.49 million to support the newly created Office of Water Science, of which $15.0 million has been transferred to the forward estimates
-
an increase of $18.74 million for the Commonwealth’s contribution to the Murray–Darling Basin Authority.
|
Expenses increased in 2011–12 by $55.91 million mainly due to:
-
costs of $29.3 million incurred in relation to the Office of Water Science, Coal Seam Gas initiative
-
a contribution of $18.74 million to the Murray–Darling Basin Authority.
|
Outcome 5
|
Income increased in 2011–12 by $46.28 million due to the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $55.85 million (2010–11: $52.70 million), offset by the transfer of the Arts and Culture function to the Department of Prime Minister and Cabinet in February 2011.
|
Expenses increased in 2011–12 by $53.03 million mainly due to:
-
the transfer of the Environmental Regulation function from Outcome 1 to Outcome 5 in 2011–12 of $59.91 million (2010–11: $59.65 million), offset by expenditure relating to the Arts and Culture function, that was transferred to the Department of Prime Minister and Cabinet in February 2011
-
an increase in funding of $1.59 million for the Kokoda Initiative.
| Financial performance of administered activities
The financial performance of the department’s administered activities for 2011–12 is summarised in the table below. Administered items are assets, liabilities, revenues and expenses that are controlled by the government but managed or overseen by the department on behalf of the government.
Table 18: Administered financial performance
Administered
|
2011–12 Actuals $’000
|
2010–11 Actuals $’000
|
Variance $’000
|
Outcome 1
|
Income
|
877
|
7338
|
(6461)
|
Expenses
|
316 024
|
296 085
|
19,939
|
Surplus/(Deficit)
|
(315 147)
|
(288 747)
|
(26 400)
|
Outcome 2
|
Income
|
12 062
|
5060
|
7002
|
Expenses
|
89 692
|
45 824
|
43 868
|
Surplus/(Deficit)
|
(77 630)
|
(40 764)
|
(36 866)
|
Outcome 3
|
Income
|
-
|
-
|
-
|
Expenses
|
12
|
11
|
1
|
Surplus/(Deficit)
|
(12)
|
(11)
|
(1)
|
Outcome 4
|
Income
|
64 794
|
19 691
|
45 103
|
Expenses
|
469 958
|
524 118
|
(54 160)
|
Surplus/(Deficit)
|
(405 164)
|
(504 427)
|
99 263
|
Outcome 5
|
Income
|
560
|
2351
|
(1791)
|
Expenses
|
12 612
|
151 304
|
(138 692)
|
Surplus/(Deficit)
|
(12 052)
|
(148 953)
|
136 901
|
Total Administered
|
Income
|
78 293
|
34 440
|
43 853
|
Expenses
|
888 298
|
1 017 342
|
(129 044)
|
Surplus/(Deficit)
|
(810 005)
|
(982 902)
|
172 897
|
Notes:
2011–12 Actuals Actual income and expenses for 2011–12.
2010–11 Actuals Actual income and expenses for 2010–11.
Variance The difference between the actual results for 2011–12 and 2010–11 (i.e. 2011–12 Actuals minus 2010–11 Actuals).
Table 19: Comparison of administered financial performance with previous year
Outcome
|
Income
|
Expenses
|
Outcome 1
|
The decrease by $6.46 million in income in 2011–12 was primarily the result of:
-
a one-off grant repayment of $4 million under the Great Barrier Reef Marine Park Structural Adjustment package that occurred in 2010–11
-
a decrease in grant repayments of $0.8 million following the termination of the Community Water Grants program
-
a decrease of $1.9 million in grant repayments under Caring for our Country–Natural Heritage Trust.
|
The increase by $19.94 million in expenses in 2011–12 was the net result of movements in several grant programs including:
-
an increase of $33.8 million under the Biodiversity Fund
-
a decrease of $22.1 million in suppliers and grants expense under Caring for our Country–Natural Heritage Trust
-
an decrease of $0.4 million under the Caring for our Country–Environmental Stewardship Program
-
an increase of $9.8 million under Caring for our Country–Working on Country
-
a decrease of $1.2 million under the Tasmanian Forests program.
|
Outcome 2
|
Income increased by $7 million in 2011–12 due to increased receipts for the following items into the Ozone Protection and Synthetic Greenhouse Gas special account:
-
an increase of $6.2 million in permit fees received from industry boards for Refrigeration & Air Conditioning (RAC) and Fire Protection industry permits
-
an increase of $2.6 million from application fees for licences granted under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. These fees are paid bi-annually
-
an increase of $0.2 million in import levies collected under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
The increase is partially offset by a $2.2 million decrease generated by the one-off return in 2010–11 of grant funding under the Housing Affordability Fund program.
|
The increase by $43.87 million in 2011–12 was primarily the result of:
-
a $37.6 million increase under the Housing Affordability Fund program and a $1.3 million increase under the National Rental Affordability Scheme. These programs were transferred to the department from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) following a restructuring of administrative arrangements on 14 September 2010. The programs were transferred back to FaHCSIA following a subsequent restructuring of administrative arrangements on 14 December 2011
-
a $4.6 million increase in expenditure from the Ozone Protection and Synthetic Greenhouse Gas special account.
|
Outcome 3
|
Not applicable.
|
This item represents depreciation of the Antarctic Heritage Collection.
|
Outcome 4
|
The increase by $45 million in income in 2011–12 was the result of:
-
an increase of $1.6m in contributions to the Water Efficiency Labelling and Standards special account from State and Territory governments
-
an increase of $7.4m relating to water entitlements received under the Sustainable Rural Water Use and Infrastructure Program for which the initial grant payment was a Specific Purpose Payment made by the Department of the Treasury
-
a one-off grant repayment of $6.4m under the Water Smart Australia program that occurred in 2011–12
-
An increase of $3.7m from the reversal of previous impairments of jointly controlled assets held in the Living Murray Initiative joint venture
-
An increase of $26.1m associated with the recognition of jointly controlled assets in the River Murray Operations joint venture.
|
The decrease by $54.16 million in 2011–12 was primarily the result of:
-
a $109.6m decrease in impairment losses recognised on water entitlement assets, in 2011–12 impairments of $74.3m were recognised (2010–11: $183.9m)
-
a $132.5m decrease in expenditure on grants under the Water Smart Australia program
-
a $42.9m increase in expenditure on grants under the National Urban Water and Desalination Plan
-
a $46.5m increase in expenditure under the National Water Security Plan for Cities and Towns
-
a $12.5m decrease in expenditure under the Restoring the Balance in the Murray Darling Basin program
-
a $111.3m increase in expenditure under the Sustainable Rural Water Use and Infrastructure Program
A $3.5m increase in expenditure from the Environmental Water Holdings special account A $2.1m decrease under the National Rainwater and Greywater initiative A $2.8m decrease under the Green Precincts program A $1m increase in expenditure from the Water Efficiency Labelling and Standards special account.
|
Outcome 5
|
The decrease by $1.79 million in 2011–12 was the result of the transfer of arts and culture functions to the Department of Prime Minister and Cabinet in February 2011. Programs under these functions recorded income of $1.7m in 2010–11.
|
The decrease by $138.69 million in 2011–12 was the result of:
-
the transfer of arts and culture functions to the Department of Prime Minister and Cabinet in February 2011. Programs under these functions incurred expenses of $136.9m in 2010–11
-
a decrease of $2.9m following the termination of the Jobs Funds–Heritage Projects to Support Local Jobs program
-
a $2.3m decrease in expenses under the Kokoda Initiative
-
an increase of $3.4m from the new Your Community Heritage program announced at Budget 2011–12.
|
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