Overview of financial performance

​Operating budget

The department began 2012–13 with a budgeted net cost of service of $302.9 million. During the year, this budget increased to $303.9 million (an increase of $1. 0 million) primarily because of the following items in the Portfolio additional estimates statements 2012–13:

  • $2.5 million one-off reallocation of funding for ABARES
  • $1.9 million reduction because of savings measures including the Fire Service Levy and targeted savings related to public service efficiencies.

Departmental operating result

The department’s 2012–13 financial result was as expected, despite the challenges posed by economic conditions and savings measures. The 2012–13 financial statements reported a $48.2 million operating deficit, compared to a budgeted deficit of $43.8 million.

The main factors contributing to the 2012–13 operating result primarily include:

  • lower than expected revenues in cost-recovery, in line with declining trade volumes at the border ($19 million)
  • write-down and impairments ($5 million)
  • payments made in the year where revenue received was in previous years ($10 million)
  • unfunded depreciation ($8 million)
  • drawing on reserves for some critical infrastructure repairs ($5 million).

Cost-recovery programs such as import clearance and seaports continue to present challenges for the department’s financial management. Efforts continue to be applied to ensure the cost base is in line with revenues. However, revenues continue to fluctuate, with trade volumes across the border and fees that have not changed since 2009. Figure 1 shows the sources of our cost-recovered revenue in 2012–13.

Figure 1 Sources of cost recovery revenue for 2012–13

Figure 1 Sources of cost recovery revenue for 2012. This graph shows the sources of cost-recovery revenue for 2012-13: Import clearance generated $164.53 million Meat exports generated $71.39 million Grain and plant products generated $22.88 million Seaports generated $17.62 million International mail generated $7.61 million Horticulture exports generated $6.57 million Post entry animal quarantine generated $6.13 million Live animal exports generated $4.86 million Seafood generated $3.65 million Non-prescribed goods generated $2.42 million Dairy generated $2.16 million Horse imports generated $2.13 million Other small categories generated a total of $17.28 million

The department continues to meet the savings targets and efficiency measures imposed by the Australian Government. In doing this, the department has reprioritised investments, reduced non-critical spending such as travel and consultants, and is reviewing its major supplier spends.

Figure 2 Total of both administered and departmental expenses over the past 10 years

This chart shows the total of both administered and departmental expenses over the past ten years, from 2004 to 2013: In 2004, administered expenses were $1.51 billion and departmental expenses were $0.49 billion, with total expenses of $2 billion. In 2005, administered expenses were $1.36 billion and departmental expenses were $0.52 billion, with total expenses of $1.88 billion. In 2006, administered expenses were $2.25 billion and departmental expenses were $0.56 billion, with total expenses of $2.81 billion. In 2007, administered expenses were $2.22 billion and departmental expenses were $0.63 billion, with total expenses of $2.85 billion. In 2008, administered expenses were $2.82 billion and departmental expenses were $0.64 billion, with total expenses of $3.46 billion. In 2009, administered expenses were $1.69 billion and departmental expenses were $0.65 billion, with total expenses of $2.34 billion. In 2010, administered expenses were $1.04 billion and departmental expenses were $0.63 billion, with total expenses of $1.67 billion. In 2011, administered expenses were $0.95 billion and departmental expenses were $0.66 billion, with total expenses of $1.61 billion. In 2012, administered expenses were $0.88 billion and departmental expenses were $0.73 billion, with total expenses of $1.61 billion. In 2013, administered expenses were $0.79 billion and departmental expenses were $0.71 billion, with total expenses of $1.5 billion.

Figure 3 shows the assets, liabilities and net asset position over 10 years and indicates our focus on financial management while delivering key activities to our stakeholders. As shown, the department’s net asset position has reduced by $32.1 million from 2011–12.

Figure 3 Assets, liabilities and net asset position for the department over the past 10 years

This chart shows the assets, liabilities and net asset position for the department over the past ten years, from 2004 to 2013: In 2004, assets totalled $189.672 million, liabilities totalled $156.263 million, and our net asset position was $33.409 million. In 2005, assets totalled $199.705 million, liabilities totalled $157.282 million, and our net asset position was $42.423 million. In 2006, assets totalled $219.73 million, liabilities totalled $174.661 million, and our net asset position was $45.069 million. In 2007, assets totalled $243.13 million, liabilities totalled $212.509 million, and our net asset position was $30.621 million. In 2008, assets totalled $253.531 million, liabilities totalled $206.194 million, and our net asset position was $47.337 million. In 2009, assets totalled $223.934 million, liabilities totalled $193.015 million, and our net asset position was $30.919 million. In 2010, assets totalled $262.294 million, liabilities totalled $208.657 million, and our net asset position was $53.637 million. In 2011, assets totalled $298.128 million, liabilities totalled $210.512 million, and our net asset position was $87.616 million. In 2012, assets totalled $311.701 million, liabilities totalled $236.361 million, and our net asset position was $75.34 million. In 2013, assets totalled $261.804 million, liabilities totalled $218.519 million, and our net asset position was $43.285 million.

Industry reserves

DAFF manages 16 arrangements that are supported by industry reserves. Industry reserves operate to provide stability to the long-term financial position of the arrangement, avoiding the need for frequent changes in fees and charges. They also operate to management unforeseen over- and under-recoveries that may result from changes in the demand for serves and the level of industry activity. The financial result of each arrangement is transferred to the reserve at year’s end.

Figure 4 Industry reserve balances at 30 June 2013

This chart outlines the industry reserve balances at 30 June 2013: National Residue Survey balance was $14.57 million  Grains and seed exports balance was $14.04 million  Meat exports balance was $3.53 million Seafood and egg exports balance was $0.44 million Non-prescribed goods balance was $0.28 million Horticultural exports balance was $0.26 million Dairy exports balance was $0.25 million  Seaports balance was $0.03 million  Organic food exports balance was minus $0.22 million Post entry plant quarantine balance was minus $0.37 million  Import clearance balance was minus $0.93 million  Horses balance was minus $1.35 million  Animal quarantine stations balance was minus $4.64 million Live animal exports balance was minus $5.68 million

Note: changes from industry reserves reported in 2011–12 result from operating surpluses or deficits recorded by the arrangement.

The target level of each reserve is agreed between DAFF and the respective industries, with a target range between 2 per cent and 10 per cent. A Cost Recovery Impact Statement is undertaken periodically to manage changes in each arrangement that lead to financial variations.

Administered program performance

The department began 2012–13 with estimated revenue of $413.7 million and estimated expenses of $793.7 million.

Our 2012–13 administered activities covered programs such as:

During the year no new government initiatives were introduced that adjusted the department’s budget.

Administered Financial Results

Revenue received for 2012–13 was $450.9 million; an increase from the previous year’s revenue of $395.8 million.

Expenditure for 2012–13 was $791.1 million; a decrease from the previous year’s expenditure of $883.3 million (see Figure 2). This reflects completion of a number of programs in 2012.

Previous | Annual Report contents | Next

Last reviewed: 4 November 2019
Thanks for your feedback.
Thanks! Your feedback has been submitted.

We aren't able to respond to your individual comments or questions.
To contact us directly phone us or submit an online inquiry

Please verify that you are not a robot.

Skip