Department of Infrastructure, Regional Development and Cities
Departmental Budget Variances Commentary
Budget Variances Commentary
Machinery of Government changes
Variances against the original budget for the following items are mainly associated with the machinery of government changes disclosed at Note 8.2A:
Statement of Comprehensive Income—employee benefits, supplier expenses, depreciation and amortisation and revenue from government.
Statement of Financial Position—intangible assets, employee provisions and other provisions.
Statement of Changes in Equity—contributed equity.
Statement of Cash Flows—operating cash flows for employees and suppliers.
Variances have been explained below where they are due to factors other than the machinery of government changes.
Statement of Comprehensive Income
Supplier expenses are also under budget due to changes in priorities associated with the Western Sydney Airport and Inland Rail projects.
Write-down and impairment expenses of $4.4 million mainly relate to the write-down of leasehold improvement assets for:
- components of office fitout that have been replaced through refurbishment, and
- office fitout subject to sub-lease arrangements for the remainder of the lease term.
Revenue from the sale of goods and rendering of services is over budget by $4.2 million mainly due to the recovery of costs incurred on behalf of WSA Co Limited during its establishment.
Other gains are over budget by $0.6 million mainly due to the reversal of provisions for makegood and the recognition of assets at fair value.
Revenue from government is under budget by $34.8 million due to the machinery of government changes and the quarantine of Departmental appropriations under s51 of the PGPA Act.
Statement of Financial Position
Financial assets are over budget by $14.1 million mainly due to differences between the actual and budgeted opening balances for appropriation receivables.
Land and buildings are over budget by $1.6 million due to expenditure on office fitout that was originally budgeted for the purchase of property, plant and equipment assets, partially offset by the transfer of assets through the machinery of government changes.
Payables are over budget due to a difference between the estimated and actual timing of payments at
30 June 2018.
Statement of Changes in Equity
Total equity is over budget by $8.5 million mainly due to differences between the actual and budgeted opening balances.
Cash Flow Statement
Variances in the Cash Flow Statement are broadly consistent with the variances explained above for income and expenses.