› DIER › Annual Reports › 2003 Annual Report › 2003 Financial Statements › Statement of Compliance

Statement of Compliance with Consolidated Fund Appropriations and other External Requirements for the year ended 30 June 2003

		2001-02	2002-03	2002-03
		Actual	Estimate	Actual	Variation
	Note	$’000	$’000	$’000	$’000
OPENING BALANCE	1	15,965	4,722	7,920	-3,198
RECEIPT
Consolidated Fund:
Recurrent services	2	92,395	95,363	97,697	-2,334
Works and services	2	71,216	69,360	75,645	-6,285
Reserved by Law		...	52	...	52
Total Consolidated Fund		163,611	164,775	173,342	-8,567
Other Receipts
Gross cash proceeds from sale of assets		14	...	134	-134
Infrastructure Fund	3	19,001	...	14,364	-14,364
Commonwealth cash receipts not paid into Consolidated Fund	5	577	114	1,208	-1,094
Non-government contributions	5	5,167	3,136	5,670	-2,534
Departmental revenue not paid into the Consolidated Fund	6	174,975	157,610	192,157	-34,547
GST collections and input tax credits	7	10,779	9,967	11,562	-1,595
Total Other Receipts		210,513	170,827	225,095	-54,268
TOTAL FUNDING OF OUTPUTS		390,089	340,324	406,357	-66,033
EXPENDITURE BY OUTPUT GROUP
Output Group 1 Development of Transport Policy Advice and Planning
Output 101 Passenger Transport Policy Advice		879	480	989	-509
Output 102 Freight Transport Policy Advice		778	740	878	-138
Output 103 Transport System Policy Advice		592	471	742	-271
Output Group 1 Total	8, 9	2,249	1,691	2,609	-918
Output Group 2 Land Transport Safety Programs
Output 201 Traffic Management Standards		1,109	1,466	1,065	401
Output 202 Road Safety Research, Education, Promotion and Advice		2,277	3,091	2,303	788
Output 203 Driver Licensing		6,666	6,768	6,745	23
Output 204 Vehicle Registration		4,939	3,757	4,679	-922
Output 205 Vehicle Standards and Compliance		3,494	3,605	3,413	192
Output Group 2 Total	8, 10	18,485	18,687	18,205	482
Output Group 3 Provision of Transport Services and Infrastructure
Output 301 Traffic Signal Maintenance		4,049	3,753	4,734	-981
Output 302 Island Shipping		41	115	31	84
Output 303 Provision and Management of Public Passenger
Transport		1,732	2,681	1,884	797
Output Group 3 Total	8, 11	5,822	6,549	6,649	-100
Output Group 4 Provision of Energy Advisory and Regulatory Services
Output 401 Energy Policy and Advice		512	709	1,378	-669
Output Group 4 Total	8, 12	512	709	1,378	-669
Output Group 5 Workplace Standards
Output 501 Safety Standards and Compliance		6,434	6,800	6,110	690
Output 502 Employer and Employee Services		5,154	4,566	5,344	-778
Output 503 Workplace Standards and Advice		1,133	1,305	1,329	-24
Output 504 Electricity Industry Regulation		568	547	569	-22
Output Group 5 Total	8, 13	13,289	13,218	13,352	-134
Output Group 6 Mineral Resources Management & Administration
Output 601 Minerals Exploration and Land Management		3,794	2,971	3,181	-210
Output 602 Tenement Management of Exploration and Minerals Industry		3,459	2,388	2,973	-585
Output Group 6 Total	8, 14	7,253	5,359	6,154	-795
Output Group 7 Support for Minister in Infrastructure Development and Business Management
Output 701 Support for Minister in Infrastructure Development and Business Management		545	542	807	-265
Output Group 7 Total	8, 15	545	542	807	-265
Output Group 8 Support for Racing Industry
Output 801 Racing Industry		1,799	1,446	1,892	-446
Output Group 8 Total	8, 16	1,799	1,446	1,892	-446
TOTAL		49,954	48,201	51,046	-2,845
ADMINISTERED PAYMENTS	17	236,584	218,741	256,679	-37,938
CAPITAL INVESTMENT PROGRAM	18	78,888	69,710	73,647	-3,937
INFRASTRUCTURE FUND	3	16,743	...	15,404	-15,404
TOTAL OUTPUT GROUP EXPENDITURE		382,169	336,652	396,776	-60,124
CLOSING BALANCE		7,920	3,672	9,581	-5,909

 
  

Note:
The Statement of Compliance with Consolidated Fund Appropriations and other External Requirements is prepared on a cash basis, and as such, line items may not agree to line items in the Statement of Financial Performance, which has been prepared on an accruals basis.

Statement of Items Reserved by Law for the year ended 30 June 2003

		2001-02	2002-03	2002-03
		Actual	Estimate	Actual	Variation
	Note	$’000	$’000	$’000	$’000
Contribution towards the Construction of Streets in Towns by Municipal Councils		...	52	...	52
Total		...	52	...	52

Explanation of Significant Variations
1. Opening Balance
The higher than estimated opening balance is mainly attributable to a higher than expected carry-over under the Infrastructure Fund program and Section 8A Inter Year Transfers which were approved after preparation of the budget estimates.

2. Consolidated Fund Receipts
During the year the Department had approved variations to original budget for the following items:

 

Recurrent	$000's
Original Recurrent Budget	95,363
Increases
Output Groups
Reimbursement of 2001-02 Infrastructure Fund allocation	500
Crossing Guard entitlements	67
Driver Testing Officers	53
Memana Bridge, Flinders Island	250
Proceeds from sale of Farley St site	94
Administered Payments
Indexation of the Bruny Island Ferry contract	8
Furneaux Shipping Contract	100
CSO Payment to Metro	463
School Bus Contract Services cost increases	930
Pensioner, Aged & Unemployed Concessions cost increases	45
Transport Access Scheme cost increases	475
Contribution to Marine and Safety Tasmania	120
Private Forests Tasmania	90
Tasmanian Racing Assistance	200
Total Increases	3 395
Reductions
MRS Re-development	-447
School Bus Route Services	-300
Total Reductions	-747
Total Variations	2 648
Final Recurrent Budget	98 011
Under Expenditure – Administered Items	-314
Final Recurrent Expenditure	97 697
Capital
Original Capital Budget	69,360
Increase in Commonwealth Receipts	6,515
Final Capital Budget	75,875
Under Expenditure – National Highways	-230
Final Capital Expenditure	75,645

    

Consolidated Fund recurrent expenditure was in accordance with the final approved budget with the exception that expenditure against Administered Payments was $314,000 underspent. This was mainly due to higher than expected under-expenditure on School Bus Route services and lower than expected expenditure under the King Island Shipping contract.

Consolidated Fund capital expenditure was $230,000 underspent which was due to National Highway expenditure being expended in line with the final funding received from the Commonwealth which was $230,000 lower than the final estimate.

At the end of the financial year the Department had approved carry forwards for:

	$000's
Recurrent
Carry Forward of Funds for Racing Assistance	200
Carry Forward of Funds for Rehabilitation Degraded Mineral Lands	56
-----------------------------------------------------------------------------
Capital
Carry Forward of Commonwealth Road Funding	3 421
TOTAL SECTION 8A INTER YEAR TRANSFERS	3 677

Particulars relating to the above are noted under each relevant Output Group below.

3. Infrastructure Fund
At the time of budget preparation estimates were not provided for funding under the Government's Infrastructure Fund Programs. During 2002-03 the Department received $14.364m in funding for Infrastructure Fund projects. The funding was made up as follows:

Infrastructure Fund $6.024m
Social Infrastructure Fund $3.768m
Major Projects Fund $4.572m

Of the funds provided, $1.187m was carried over for utilisation during the 2003-04 financial year as follows:

Funds brought forward from 2001-02 $ 2.227m
Revenue 2002-03 $14.364m
Expenditure 2002-03  $15.404m
--------------------------------------------------------------------------------
 
Funds carried forward to 2003-04 $ 1.187m

4. Commonwealth receipts not paid into the Consolidated Fund
Various Commonwealth grants were received during 2002-03, the specifics of which were not known at the time of budget preparation. The major grants received were:

An amount of $600,000 was received for on-forwarding to Hydro Tasmania being the first progress payment under the Remote Power Program in relation to the King Island Wind farm project; and
An amount of $230,000 was received under National Heritage Trust funding for the Storeys Creek Project managed by Mineral Resources Tasmania.
5. Non-government contributions
Non-government contributions in excess of budget estimates was mainly attributable to:

Industry contributions for funding of the Forest Practices Board ($1.024m) were not classified as non-government contributions in budget estimates;
Industry contributions for the MAIB Road Safety Taskforce ($750,000) were not classified as non-government contributions in budget estimates; and
Industry contributions for the WorkCover Board were approximately $644,000 in excess of the original estimates.
6. Departmental revenue not paid into the Consolidated Fund
The major component of additional revenue related to registration related fees collected on behalf of external bodies being in excess of budget estimates by approximately $34.262m. The estimates for revenue collected on behalf of external bodies were reviewed in 2002-03.

7. GST collections and input tax credits
The increase in this item was due to higher than estimated receipts for GST input tax credits being received as a result of GST associated with expenditure under the Infrastructure Fund Program which was not budgeted for.

8. Expenditure by Output Group
Following the finalisation of the 2002-03 budget the Department undertook an exercise to review the distribution of Departmental costs against Outputs. In addition, the Department undertook an exercise to provide for more accurate budgeting of expenditure and revenue through Special Deposits and Trust Funds (that is, expenditure not through the Consolidated Fund appropriation). The combination of these exercises resulted in the Department recasting its budget estimates against Outputs and Output Groups with significant changes in some instances. Due to this the explanations against each Output Group detail the variation to the original budget and then reasons for the final variation if material.

9. Output Group 1 Development of Transport Policy Advice and Planning
The final budget estimate for Output Group 1 was increased by $945,000 with final expenditure being $27,000 under that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8;
An increase in the recurrent allocation of $500,000 for reimbursement of an under allocation of Infrastructure Funds in 2001-02; and
$109,000 was re-allocated from Output Group 7 Support for Minister in Infrastructure Development and Business Management.
10. Output Group 2 Land Transport Safety Programs
The final budget estimate for Output Group 2 was decreased by $414,000 with final expenditure being $68,000 under that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8;
An increase in the recurrent allocation of $67,000 for Crossing Guards entitlements as a result of part-time crossing guards being appointed as permanent employees under the State Service (Savings and Transitional Provisions) Act 2000;
An increase in the recurrent allocation of $53,000 for additional Driver Testing Officers to meet driver testing demand; and
A decrease in the recurrent allocation of $447,000 from savings in funds allocated to the re-development of the Motor Registry System.

11. Output Group 3 Provision of Transport Services and Infrastructure
The final budget estimate for Output Group 3 was decreased by $40,000 with final expenditure being $140,000 over that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8; and
An increase in the recurrent allocation of $250,000 for replacement of the Memana Bridge on Flinders Island which was destroyed by fire during 2002-03.

12. Output Group 4 Energy Advisory and Regulatory Services
The final budget estimate for Output Group 4 was increased by $36,000 with final expenditure being $633,000 over that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8.
The final over expenditure was mainly attributable to $600,000 that was received from the Commonwealth and then transferred to Hydro Tasmania being the first progress payment under the Remote Power Program in relation to the King Island Wind farm project (see also note 4). The transfer to Hydro Tasmania was not included in the final budget estimate.

13. Output Group 5 Workplace Standards
The final budget estimate for Output Group 5 was decreased by $602,000 with final expenditure being $736,000 over that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8.
The final over expenditure was mainly attributable to expenditure in excess of estimates of $738,000 by the WorkCover Board offset by increased revenue of $644,000 (see note 5).

14. Output Group 6 Mineral Resources Management and Administration
The final budget estimate for Output Group 6 was increased by $764,000 with final expenditure being $31,000 over that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8.

15. Output Group 7 Support for Minister in Infrastructure Development and Business
Management
The final budget estimate for Output Group 7 was increased by $259,000 with final expenditure being $6,000 over that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8.

16. Output Group 8 Support for Racing Industry
The final budget estimate for Output Group 8 was increased by $474,000 with final expenditure being $28,000 under that estimate. The final budget estimate was adjusted as a result of:

The review of distributions of Departmental costs against Outputs and the review of estimates for Special Deposits and Trust fund expenditure as per note 8; and
An increase in the recurrent allocation of $94,000 relating to proceeds from the sale of Farley Street to be used in relation to the change of accommodation premises for Racing Services.

17. Administered Payments
Approval for additional funds was received from the Treasurer for the following Administered Payments ($3.395m in total):

  $’000
   
Bruny Island Ferry Service
Additional costs were incurred due to an increase in indexation provided under the Bruny Island Ferry Service contract. 8
   
Private Forests Tasmania (PFT)
The increase in this item was due to PFT receiving lower than anticipated revenue from the Private Forests Service Levy to support its operations during 2002?03. This occurred as a result of delays in implementation of the levy.  90
   
Payments to School Bus Operators: Contract Services
Additional funding was approved due to a significant increase in the School Bus Index which applied from 1 October 2002, a number of operational changes to route structures which resulted in additional payments, and a compensation payment to an operator due to the cessation of a route provided by that operator. 930
   
Transport Access Scheme
The increase in expenditure for this item was a result of an increase in the number of trips by eligible claimants, the cost of those trips, and the number of eligible claimants of the scheme. 475
   
Pensioner Aged and Unemployed Concessions
Core regular passenger transport (RPT) services are provided through contracts which contain an indexation clause that determines both fares and payments payable to the service provider for each eligible passenger carried. Actual passenger numbers and trip characteristics are market driven. The Department exercises no control over choice of service provider or trip profile. This increase is a result of a rise in indexation. 45
   
Tasmanian Racing Assistance
Additional funding of $200,000 was approved to be carried forward into 2003-2004 to meet commitments to the Tasmanian Racing Industry. 200
   
Furneaux Shipping Contract
The new indexed contract for Furneaux shipping subsidy was finalised during 2002-03 with the first full year of the new contract covering the period 1 November 2001 to 30 October 2002. No payments were made in 2001?02 for the above period due to the contract not being finalised. Therefore during 2002-03 the following was required to be paid under the contract:

202,000 for the period from 1 November 2001 to 30 October; and
$105,000, being the first instalment for the period 1 November 2002 to 30 October 2002.
 100
   
CSO payment to Metro
The preliminary Government Prices Oversight Commission (GPOC) Report on Metro Pricing Policy 2003 was reviewed and it was agreed that Metro would submit a claim on the basis of the agreed formula recommended by GPOC. As approved by the Minister this resulted in an increase of $339,000 to the CSO payment. In addition there was a $124,000 increase due to increases in the Metro index calculation, particularly the fuel and parts component. 463
   
Contribution to Marine and Safety Tasmania (MAST)
The Treasurer approved MAST retaining 100 per cent of the sale proceeds of land at the Ulverstone Wharf with the proceeds to be used by MAST to replace jetty infrastructure at Port Sorell. 120

Offsetting the above increases in budgeted expenditure were savings of $454,000 against the item School Bus Route Services and $132,000 against the King Island Shipping Contract.

The other major variations contributing to the overall expenditure in excess of budget of $37.938m were:

$34.067m relating to registration revenue collected and transferred to third parties including the MAIB, the State Fire Commission and the Department of Treasury and Finance (see also note 6); and
$1.400m relating to higher GST payments on acquisitions than estimated. This was mainly attributable to GST associated with expenditure under the Infrastructure Fund Program which was not budgeted for (see also note 7).

18. Capital Investment Program
Over expenditure in the Capital Investment Program of $3.937m primarily relates to Commonwealth National Highway funding and in particular:

Expenditure of approved carry forward amounts from 2001-02 of $1.018m relating to Commonwealth National Highway funding. The carry forward was not known at the time of the 2002-03 budget preparation;
An increase of $6.285m in the National Highway Program approved by the Commonwealth (see also note 2); and
The latter increase was offset by the fact that not all of the increased funding was expended as at 30 June 2003 and therefore the Department received approval to carry forward Commonwealth National Highway funding of $3.421m.

 

STATEMENT OF RECEIPTS AND EXPENDITURE FOR DEPARTMENTAL ACCOUNTS WITHIN THE SPECIAL DEPOSITS AND TRUST FUND FOR THE YEAR ENDED 30 JUNE 2003

Balance					Balance
30-Jun-02	No	Name	Receipts	Expenditure	30-Jun-03
$’000			$’000	$’000	$’000
1,025	T435	Workers’ Rehabilitation and Compensation Act 1988 Fund Account	3,956	3,945	1,036
620	T466	Mines Deposit Account	139	26	733
6,118	T524	DIER Operating Account	455,205	453,652	7,671
65	T661	Traffic Management Operating Account	253	244	74
34	T760	Cab and Hire Car Trust Fund	1	15	20
58	T801	Taxi Industry General Administration Trust Fund	38	49	47
7,920		TOTAL	459,592	457,931	9,581

    
DETAILS OF SPECIAL DEPOSITS AND TRUST FUND ACCOUNTS

Account Number	Account Name	Account Purpose
T435	Workers’ Rehabilitation and Compensation Act 1988 Fund Account	To record transactions associated with the administration of the Workers’ Rehabilitation and Compensation Act 1988.
T466	Mines Deposit Account	Deposits are received from individuals and companies as security against failure to perform or rehabilitate leases and licence areas under the Mining Act 1929. Deposits are returned when leases or licences are cancelled or replaced by a bank guarantee.
T524	DIER Operating Account	To record transactions associated with the receipt and expenditure of funds managed by the Department of Infrastructure, Energy and Resources except for accounts created by legislation and funds which are held in “trust” for a particular purpose.
T661	Traffic Management Operating Account	To record transactions associated with user pays activities undertaken by the Traffic Management Branch of the Department.
T760	Cab and Hire Car Trust Fund	To record transactions related to an additional area fund for the purposes of the Hobart Taxi Area under Section 14 of the Taxi Industry Act 1995.
T801	Taxi Industry General Administration Trust Fund	To record transactions relating to the general administration of the Taxi Industry Act 1995. Section 15 of the Taxi Industry Act 1995 provides the establishment of a separate fund which is to be credited with the annual fees payable for perpetual taxi licences against which the general administration costs associated with the Taxi Industry Act 1995 are to be charged.