Financial summary 2012-13
The financial summary provides an overview of the department’s financial performance for 2012-13. A detailed view of the department’s financial performance for 2012-13 is provided in the financial statements included in this Annual Report.
2012-13 saw the department enter a period of organisational stability following the machinery of government changes that took place in 2011-12.
This stability combined with the department’s ongoing commitment to the government’s fiscal repair strategy, is reflected in lower than forecast expenses. The department remains well positioned financially to meet its objectives as outlined in the 2012-2016 Strategic Plans as well as any future challenges.
In accordance with the Financial Accountability Act 2009 the Chief Finance Officer has provided the Director-General with a statement that the department’s financial internal controls are operating efficiently, effectively and economically.
The department’s primary source of revenue is departmental service revenue. In addition, the department received contributions from other entities, sponsorship towards events and revenue from user charges such as corporate services provided to other agencies.
The major expenses associated with the department’s activities include employee expenses (wages, salaries, related taxes and superannuation), supplies and services costs associated with the day-to-day operation of the department, grants and subsidies and depreciation of the department’s physical assets.
The tables below provide a comparison of the 2012-13 actual financial results with the 2011-12 actual financial results.
Comparison between Actual Results for 2012-13 and 2011-12
| Department of the Premier and Cabinet | Actual 2012-13 $’000 |
Actual 2011-12 $’000 |
Variance $’000 |
|---|---|---|---|
| Income from Continuing Operations | |||
| Departmental services revenue | 83,884 | 136,396 | (52,512) |
| User charges | 4873 | 4781 | 92 |
| Grants and other contributions | 1084 | 1380 | (296) |
| Gains | 290 | - | 290 |
| Other revenue | 587 | 802 | (215) |
| Total Income from Continuing Operations | 90,718 | 143,359 | (52,641) |
| Expenses from Continuing Operations | |||
| Employee expenses | 46,165 | 64,209 | (18,044) |
| Supplies and services | 27,609 | 37,965 | (10,356) |
| Grants and subsides | 14,530 | 24,170 | (9640) |
| Depreciation and amortisation | 1281 | 1468 | (187) |
| Impairment loss | 4 | - | 4 |
| Revaluation decrement | - | 627 | (627) |
| Finance/borrowing costs | 795 | 866 | (71) |
| Other expenses | 334 | 14,054 | (13,720) |
| Total Expenses from Continuing Operations | 90,718 | 143,054 | (52,641) |
| Operating Result from Continuing Operations | - | - | - |
Total income for the year was $90.718 million. This represented an overall decrease in revenue of $52.641 million (37 per cent), with a corresponding decrease in expenses. This decrease is primarily the result of a reduction in departmental service revenue due to the effect of the 2011-12 machinery of government changes, completion of the Queensland Floods Commission of Inquiry and the application of aggressive savings targets. This is partly offset by funding provided for temporary projects such as state legal representation at various Commissions of Inquiry and Queensland’s Anzac Centenary Commemoration.
Employee expenses have decreased as a result of the continued implementation of the government’s workforce management priorities and the effect of the 2011-12 machinery of government changes.
Supplies and services have decreased predominately due to the machinery of government changes, completion of the Queensland Floods 14 | Annual Report 2012-13 Commission of Inquiry, cessation of the Queensland Premier’s Literary Awards and the completion of the TRIM upgrade in 2011-12.
The decrease in grants and subsidies is primarily due to grant payments made to entities supporting the Gold Coast 2018 Commonwealth Games (this function was transferred to the Department of Tourism, Major Events, Small Business and the Commonwealth Games in 2011-12), the University of Queensland for the Queensland Centre for Social Science Innovation and the Centre for the Government of Queensland and a donation made to the Regional Queensland Premier’s Disaster Appeal.
The decrease in other expenses is primarily due to the initial instalment paid by the state government through the department for the marketing rights relating to the promotion, marketing and merchandising of the Commonwealth Games in 2018. As a result of the 2011-12 machinery of government changes, current instalments have been met by the Department of Tourism, Major Events, Small Business and the Commonwealth Games.
The department continued to maintain a sound net asset position as at 30 June 2013 through effective asset management practices and the management of liabilities owing.
| Department of the Premier and Cabinet | Actual 2012-13 $’000 |
Actual 2011-12 $’000 |
Variance $’000 |
|---|---|---|---|
| Current Assets | |||
| Cash and cash equivalents | 5220 | 2100 | 3120 |
| Receivables | 6827 | 7815 | (988) |
| Inventories | 140 | 129 | 11 |
| Other current assets | 782 | 411 | 371 |
| Total current assets | 12,969 | 10,455 | 2514 |
| Non-current Assets | |||
| Intangible Assets | 1768 | 1944 | (176) |
| Property, plant and equipment | 11,662 | 11,964 | (302) |
| Total non-current assets | 13,430 | 13,908 | (478) |
| Total Assets | 26,399 | 24,363 | 2036 |
| Current Liabilities | |||
| Payables | 6814 | 3568 | 3246 |
| Other financial liabilities | 1304 | 1232 | 72 |
| Accrued employee benefits | 1746 | 1893 | (147) |
| Total Current Liabilities | 9864 | 6693 | 3171 |
| Non-current Liabilities | |||
| Other financial liabilities | 11,174 | 12,445 | (1271) |
| Total non-current liabilities | 11,174 | 12,445 | (1271) |
| Total Liabilities | 21,038 | 19,138 | 1900 |
| Net Assets | 5361 | 5225 | 136 |
| Equity | |||
| Contributed equity | 1776 | 1640 | 136 |
| Accumulated surplus | 3585 | 3585 | - |
| Total equity | 5361 | 5225 | 136 |
The reduction in current receivables by $0.988 million is largely due to the effect of the 2011-12 machinery of government changes.
In comparison, current payables have increased by $3.246 million (91 per cent) primarily due to timing differences in the payment of creditors and accrued expenditure recognised as at 30 June 2013 for legal fees relating to state legal representation at various Commissions of Inquiry and The Queensland Plan advertising.
The following table provides a comparison of the actual financial results of the controlled operations of the department with the original budget published in the State Budget papers.
Comparison between Budget Results and Actual Results for 2012-13
| Controlled Funds - Parent Entity | Actual $’000 |
Original Budget $’000 |
Variance $’000 |
|---|---|---|---|
| Income from Continuing Operations | |||
| Departmental service revenue | 83,884 | 105,502 | (21,618) |
| User charges | 4873 | 5253 | (380) |
| Grants and other contributions | 1084 | 714 | 370 |
| Gains | 290 | - | 290 |
| Other revenue | 587 | 4 | 583 |
| Total income from Continuing Operations | 90,718 | 111,473 | (20,755) |
| Expenses from Continuing Operations | |||
| Employee expenses | 46,165 | 47,963 | (1798) |
| Supplies and services | 27,609 | 39,039 | (11,430) |
| Grants and subsidies | 14,530 | 21,062 | (6532) |
| Depreciation and amortisation | 1281 | 2022 | (741) |
| Impairment loss | 4 | - | 4 |
| Finance/borrowing costs | 795 | 799 | (4) |
| Other expenses | 334 | 588 | (254) |
| Total Expenses from Continuing Operations | 90,718 | 111,473 | (20,755) |
| Operating Result from Continuing Operations | - | - | - |
The decrease in departmental service revenue is primarily due to the machinery of government transfer of the Office of Public Sector Renewal to the Public Service Commission, the transfer of the Health Renewal Taskforce to Queensland Health and delays in negotiation of the public sector enterprise bargaining agreement. This decrease is partly offset by funding provided for State legal representation at various Commissions of Inquiry and voluntary redundancy payments.
The decrease in supplies and services is largely due to machinery of government transfers, reduction in outsourced corporate support costs, less than expected operational spend on the implementation of the new Cabinet Information System and net deferrals between years, including for the eLegislation project and Parliamentary Committee projects. This increase is partly offset by a reallocation of budget to undertake The Queensland Plan.
The decrease in grants and subsides is due to the reallocation of budget to undertake The Queensland Plan as well as the deferral of budget into 2013-14 to cover commitments against the Director-General's Reserve.
| Controlled Funds - Parent Entity | Actual $’000 |
Original Budget $’000 |
Variance $’000 |
|---|---|---|---|
| Current Assets | |||
| Cash and cash equivalents | 5220 | 1852 | 3368 |
| Receivables | 6827 | 5289 | 1538 |
| Inventories | 140 | 130 | 10 |
| Other current assets | 782 | 411 | 371 |
| Total Current assets | 12,969 | 7682 | 5287 |
| Non-current Assets | |||
| Intangible assets | 1768 | 2260 | (492) |
| Property, plant and equipment | 11,662 | 11,510 | 152 |
| Total Non-current assets | 13,430 | 13,770 | (340) |
| Total Assets | 26,399 | 21,452 | 4947 |
| Curent liabilities | |||
| Payables | 6814 | 2254 | 4560 |
| Other financial liabilities | 1304 | 1310 | (6) |
| Accrued employee benefits | 1746 | 1931 | (185) |
| Total Current liabilities | 9864 | 5495 | 4369 |
| Non-current Liabilities | |||
| Other financial liabilities | 11,174 | 11,175 | (1) |
| Total Non-current liabilities | 11,174 | 11,175 | (1) |
| Total Liabilities | 21,038 | 16,670 | 4368 |
| Net Assets | 5361 | 4782 | 579 |
| Equity | |||
| Contributed equity | 1776 | 1197 | 579 |
| Accumulated surplus | 3585 | 3585 | - |
| Total Equity | 5361 | 4782 | 579 |
The increase in current receivables is primarily due to fluctuations in accrued revenue and whole of government centralised leave schemes.
The increase in current payables is primarily due to accrued expenditure at year end for legal fees relating to State legal representation at various Commissions of Inquiry and the Queensland Plan advertising.
The increase in contributed equity is primarily due to the implementation of the new Cabinet Information System.