The ASC incurred an operating loss of $15.2 million in 2015-16. The key factors contributing to this loss were:
- an unfunded depreciation expense as a result of revaluations to land, buildings, property, plants and equipment since 2010.
- timing differences between the recognition of expenses incurred in 2015-16 and associated revenue from external parties received in prior years.
- the carry-over of funding provided by the Department of Health in 2014-15.
Table 12 compares the 2015-16 results to 2015-16 and to Original Budget estimates.
Key results against 2014-15 are primarily within revenue and grants. The decrease in revenue across years is primarily due to decreases in Government appropriations and non-ongoing contributions from Government agencies such as the Department of Health and the Department of Foreign Affairs and Trade. The decrease in grant expenses was primarily due to the transfer of the International Support for Development to DFAT from 1 July 2015 and a reduced number of transition and one-off grants paid in 2015-16.
The overall ASC performance against the Original Budget position is detailed in Note 17 of the financial statements.
|
|
Actual 2015-16 $m |
Actual 2014-15 $m |
Variance
|
Actual 2015-16 $m |
Original Budget 2015-16 $m |
Variance $m |
|---|---|---|---|---|---|---|
|
Income |
282.0 |
311.4 |
(29.4) |
282.0 |
277.4 |
4.6 |
|
Expenses |
297.2 |
315.6 |
(18.4) |
297.2 |
283.4 |
13.8 |
|
Surplus/(Deficit) |
(15.2) |
(4.2) |
(11.0) |
(15.2) |
(6.0) |
(9.2) |
Note: Budget figures are based on the 2015-16 Portfolio Budget Statements.
Financial position
Key indicators of the health of the ASC’s financial position are demonstrated by its ability to sustain its asset base, pay debts as they fall due in the short-term and maintain prudent levels of long-term liabilities. The ability of the ASC to sustain its asset base is indicated by changes in net assets. Figure 1 shows that net assets are stable in relation to 2015-16 and the Forward Estimates.
|
2015-16 Actual |
Net Assets Assets Liabilities |
309,358 327,458 18,100 |
|---|---|---|
|
2016-17 Budget |
Net Assets Assets Liabilities |
293,608 309,756 16,148 |
|
2017-18 Forward Estimate |
Net Assets Assets Liabilities |
287,560 304,021 16,461 |
|
2018-19 Forward Estimate |
Net Assets Assets Liabilities |
287,560 304,341 16,781 |
|
2019-20 Forward Estimate |
Net Assets Assets Liabilities |
287,560 304,669 17,109 |
Note: Budget and forward estimates are based on the figures published in the Portfolio Budget Statements 2016-17.
Asset management
While the financial position of the ASC is considered to be sound over the Budget and Forward Estimates, the Commission is reviewing its ongoing capital funding for the refurbishment and replacement of buildings and infrastructure, plant and equipment, to ensure the requirements and strategic direction of the ASC into the forward years, within available resources.