Financial Statements

CFO’s overview

Photo of Glen Casson, Chief Financial Officer
Glen Casson
Chief Financial Officer

Financial performance—departmental

The 2014–15 financial year was the first full year of operation of the department and it recorded a surplus before depreciation and amortisation of $15.7 million (5 per cent of total departmental revenue). Key drivers of the result were:

  • higher than planned own-source revenue retained under section 74 of the Public Governance, Performance and Accountability Act 2013 from property subleases and fees for service through the Shared Services Centre
  • revenue received from other Commonwealth agencies for capitalised enhancements to IT systems managed by the department that increased operating revenue but not expense
  • lower than planned staffing costs and higher capitalisation of employee costs associated with software development to support the implementation of jobactive.

The result places the department in a sound financial position as at 30 June 2015, with financial assets of $126.5 million exceeding total liabilities of $120.5 million. Non-financial assets were $111.3 million as at 30 June 2015, primarily reflecting the department’s IT systems and software, fit-outs, infrastructure and prepayments.

Financial performance—administered

In 2014–15, total administered expenses on behalf of government were $1,951.7 million, including:

  • $1,298.4 million in supplier expenses primarily related to Job Services Australia
  • $170.8 million in subsidies, primarily related to payments made under the Coal Mining Industry (Long Service Leave) Administration Act 1992
  • $385.0 million in personal benefits associated with the New Enterprise Incentive Scheme and payments made under the Fair Entitlements Guarantee programme
  • $89.8 million in grants, primarily related to workers’ compensation payments associated with Comcare, mature-age employment programmes, and payments to the Centre for Workplace Leadership.

Total administered revenue in 2014–15 was $188.3 million, primarily associated with levy collections under the Coal Mining Industry (Long Service Leave) Administration Act 1992 funding arrangements managed by the Coal Mining Industry (Long Service Leave Funding) Corporation, and recoveries of certain payments made under the Fair Entitlements Guarantee programme and asbestos-related claims.

Administered assets at 30 June 2015 were $261.9 million, largely associated with investments in the Coal Mining Industry Corporation. Administered liabilities were $2,953.2 million, of which $2,794.4 million related to amounts payable by the Commonwealth under workers’ compensation arrangements administered by Comcare but reported in the department’s financial statements due to Comcare’s status as a corporate entity.

Department of Employment financial statements and Auditor Generals-Report - 2014-15

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