Financial Statements

Summary of financial management and performance

How the agency was funded

Parliament, via the Appropriation Acts, provides the agency with five funding types:

departmental operating—to deliver the objectives of conserving Old Parliament House as a significant national heritage site and delivering the Museum of Australian Democracy at Old Parliament House
departmental capital—to replace assets used to deliver services at the museum
departmental collection capital—to add to the departmental heritage collection
administered capital—to replace building components and administered museum exhibition assets
administered collection capital—to maintain the heritage furniture collection.

How financial performance is measured

Financial forecasts are published through the year as part of the Budget Papers. The key reference point is the Portfolio Budget Statements, released on budget night.

The agency’s financial focus is to provide accurate estimates and to achieve as close to a break-even position as possible, while ensuring the efficient, effective, ethical and economical use of resources.

Key results in 2013–14

An unmodified audit opinion was received on the 2013–14 financial statements from the Australian National Audit Office (ANAO), with only one minor finding during the year. The ANAO also again rated the agency’s financial statement preparation highly against the ANAO Better practice guide for the preparation of financial statements by public sector entities.

Departmental finances

Table 9 Departmental finances compared to budget (including depreciation), 2013–14
	Budget $m	Actual $m	Change %
Income and Expenses
Employee expenses	7.889	7.990	–1
Supplier expenses	6.100	5.979	2
Depreciation and amortisation	0.228	0.243	0
Total expenses	14.217	14.212	0
Other own-source revenue	0.050	0.212	324
Net cost of services	14.167	14.000	1
Revenue from government	13.939	13.921	0
Operating result	(0.228)	(0.079)	–65
Balance Sheet
Financial assets	2.975	3.055	3
Non-financial assets	3.201	3.144	–2
Liabilities	2.363	2.237	–6
Net Assets	3.813	3.962	4

The agency had a deficit of $0.079 million compared to the estimated $0.228 million. The primary reason for the difference of $0.149 million was an increase in own-source revenue from donated assets ($0.080 million) and redundancy funding which was not fully utilised in 2013–14 ($0.042 million).

All other expenses were in line with budget.

The agency’s net asset position at the end of the financial year was 4 per cent better than anticipated mainly because leave liabilities were lower due to the payout of three redundancies and the resignation of a fourth person who had significant leave balances.

Table 10 Departmental finances, 2013–14 compared to 2012–13 (including depreciation)
	2012–13 $m	2013–14 $m	Change %
Income and Expenses
Employee expenses	7.359	7.990	–9
Supplier expenses	6.040	5.979	1
Depreciation/amortisation/writedown	0.360	0.243	33
Total expenses	13.759	14.212	–3
Other own-source revenue	0.141	0.212	50
Net cost of services	13.618	14.000	–3
Revenue from government	13.592	13.921	2
Operating result	(0.026)	(0.079)	–204
Balance Sheet
Financial assets	4.524	3.055	32
Non-financial assets	2.765	3.144	–14
Liabilities	2.541	2.237	12
Net Assets	4.748	3.962	17

The agency had a deficit of $0.079 million in 2013–14, compared to a deficit of $0.026 million in 2012–13.

Salary expenses increased by 9 per cent, mainly due to the payout of redundancies of $0.226 million, a salary increase impact of approximately $0.150 million in line with the enterprise agreement and lower staff turnover in 2013–14 which resulted in positions being filled for the whole year. Supplier expenses were essentially the same in 2012–13.

Depreciation and amortisation were lower in 2013–14 as more assets reached the end of their useful lives and were not replaced.

Revenue from government increased by $0.329 million, mainly due to redundancy funding of $0.168 million, parameter adjustments of $0.208 million and new funding for the cultural sector announced in the
2012–13 Budget, which increased revenue by $0.182 million in 2013–14. This was partly offset by $0.175 million in efficiency dividends, $0.052 million in savings measures and other minor changes.

Net assets were lower in 2013–14 as the agency returned unspent appropriations of $0.900 million which will not be re-appropriated until 2014–15.

Administered finances

Table 11 Administered finances compared to budget, 2013–14
	Budget $m	Actual $m	Change %
Income and Expenses
Revenue	1.145	1.203	5
Other gains	–	–	0
Total income	1.145	1.203	5
Depreciation and amortisation	5.037	5.072	–1
Writedown and impairment of assets	–	0.031	100
Total expenses	5.037	5.103	–1
Net cost of services	3.892	3.900	0
Balance Sheet
Financial assets	0.077	0.124	38
Non-financial assets	87.131	86.916	0
Liabilities	0.357	0.228	–57
Net Assets	86.851	86.812	0

The net cost of services in 2013–14 was $3.900 million compared to the budget estimate of $3.892 million. This was essentially the same as the budget estimate, as were net assets.

Table 12 Administered finances, 2013–14 compared to 2012–13
	2012–13 $m	2013–14 $m	Change %
Income and Expenses
Revenue	1.269	1.203	–5
Other gains	0.072	–	–100
Total income	1.341	1.203	–10
Depreciation and amortisation	5.394	5.072	6
Writedown and impairment of assets	0.052	0.031	40
Total expenses	5.446	5.103	6
Net cost of services	4.105	3.900	5
Balance Sheet
Financial assets	0.119	0.124	4
Non-financial assets	89.684	86.916	–3
Liabilities	0.262	0.228	–15
Net Assets	89.541	86.812	–3

The net cost of services in 2013–14 was $3.900 million against $4.105 million in 2012–13, which is a reduction of 5 per cent. The primary difference is that depreciation and amortisation were lower in 2013–14 as more assets reached the end of their useful lives and were not replaced. This is also reflected in lower net assets. Both shortfalls are due to a funding shortfall compared to the life cycle cost plan required to replace administered assets.

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