Chapter 5—Financial statements
Summary of financial management and performance
A detailed agency resource statement and summary resource tables by outcome are at Appendix I.
How the agency is funded
Parliament, via the Appropriation Acts, provides Old Parliament House with two types of funding: departmental and administered.
Departmental resources are used 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.
The agency also administers revenues and payments on behalf of the government, which controls how they are used and requires the agency to account for them separately. The payments relate to the refurbishment of the heritage building and the establishment of the exhibitions for the Museum of Australian Democracy.
Outputs and administered items for 2008–09 are in the following formal financial statements. A shaded background indicates that information relates to an administered resource.
How performance is measured
The agency published detailed financial forecasts through the year as part of the Budget Papers. Key reference points include:
- Portfolio Budget Statements, released on Budget night
- Portfolio Additional Estimates Statements.
As a result of Old Parliament House only being established as an Executive Agency on 1 July 2008, the agency featured in Portfolio Additional Estimates Statements only in 2008–09.
The agency’s overall focus is on providing accurate estimates and achieving a balanced financial outcome.
Key results in 2008–09
2008–09 was the first year that Old Parliament House operated as an Executive Agency, so comparative numbers are not provided in the financial statements.
Key results for departmental resources included the following:
- An operating surplus of $0.014 million was achieved, which meets the target of a balanced financial outcome.
- Net equity increased by $3.276 million, due to the net transfer of assets from DEWHA of $2.381 million and an equity injection of $0.723 million. Equity also increased due to a change in accounting policy in the asset capitalisation threshold of $0.156 million and a revaluation of assets of $0.002 million.
The agency received an unqualified audit report on the 2008–09 financial statements from the Australian National Audit Office.
Departmental finances
When the 2008–09 Budget was prepared, the agency was part of the DEWHA portfolio. Its budget was therefore not published until the 2008–09 Additional Estimates. As noted above, a net operating surplus of $0.014 million was achieved.
In revenue, Old Parliament House expected appropriations of $14.862 million, which it received. In addition, the agency recognised other gains for services received free of charge of $0.056 million, bringing total income to $14.918 million. Expenses were $14.904 million, which resulted in the surplus of $0.014 million. Supplier expenses were above budget and this was offset by under-budget employee and depreciation expenses (see Figure 10).
Figure 10 Departmental expenses, 2008–09
The agency received $0.723 million for capital expenses related to the establishment of Old Parliament House as an Executive Agency. The capital works in 2008–09 equated to $0.554 million.
Departmental cash and receivables at 30 June 2009 totalled $3.273 million, which is adequate to cover the liabilities of $2.353 million.
Administered finances
The agency budget for income was $1.468 million and depreciation expenses $2.492 million. Administered income was $1.157 million or $0.311 million below the budget, primarily due to contributions from external parties not eventuating. Depreciation expenses were $0.172 million below budget due to the timing of refurbishment works and lower than anticipated spending this year.
An amount of $20.538 million was received on the agency transfer to refurbish the south-east wing and develop exhibitions for the new Museum of Australian Democracy. The capital works program and exhibition development in 2008–09 equated to $18.340 million and it is expected that the remaining $2.198 million will be spent in 2009–10 on further developing the museum exhibitions.
Non-financial assets are primarily the heritage building and furniture along with exhibition assets for the new Museum of Australian Democracy. The heritage building and furniture asset values have increased by $5.374 million this financial year following the revaluation of these assets.