Commonwealth Grants Commission

Date

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Commonwealth Grants Commission (the Commission) operates under the Commonwealth Grants Commission Act 1973. It is a statutory authority whose role is to provide advice to the Australian Government in response to terms of reference.

The main subject on which the advice is sought is the allocation among the states of the goods and services tax (GST) revenue. Terms of reference for these inquiries are decided by the Australian Government in consultation with the States. The reports are considered at the annual meeting of the Standing Council for Federal Financial Relations.

From time to time, the Commission is also asked to report on the finances of Australia's external territories, local government matters and the financing of services for Indigenous people. Terms of reference for those inquiries are developed by relevant Australian Government agencies and the reports are considered by their Ministers.

1.2 Agency resource statement

Table 1.1 shows the total resources for the Commission.

Table 1.1: Commonwealth Grants Commission resource statement — Budget estimates for 2013‑14 as at Budget May 2013
Estimate
of prior
year amounts
available in
2013‑14
$'000
+ Proposed
at Budget
2013‑14
$'000
= Total
estimate
2013‑14
$'000
Actual
available
appropriation
2012‑13
$'000
Ordinary annual services            
Departmental appropriation            
Prior year departmental appropriation 8,000 3 -   8,000 -
Departmental appropriation2 -   6,465 1 6,465 6,480
Total net resourcing for the CGC 8,000   6,465   14,465 6,480

1. Appropriation Bill (No. 1) 2013‑14.

2. Includes $0.1 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).

3. Estimated adjusted balance carried from previous year for annual appropriations.

1.3 Budget measures

Budget measures relating to the CGC are summarised below.

Table 1.2: Australian Bureau of Statistics 2013‑14 Budget measures
Program 2012‑13
$'000
2013‑14
$'000
2014‑15
$'000
2015‑16
$'000
2016‑17
$'000
Expense measures            
Targeted savings — public service efficiencies1 1.1 (30) (43) (37) (34) (31)
Total expense measures   (30) (43) (37) (34) (31)

1. This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

The Commission's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of the Commission.

Outcome 1: Informed Government decisions on fiscal equalisation between the States and Territories through advice and recommendations on the distribution of GST revenue and health care grants

Note: Recent terms of reference for the Commission have not required advice and recommendations on health care grants.

Outcome 1 strategy

The Commission's strategy is based on its role to provide advice to the Australian Government in response to terms of reference. Five‑yearly reviews of the methods used to calculate the recommended State shares of GST revenue is the major activity associated with this outcome. The last five‑year review was completed in February 2010. Between these reviews the shares are updated annually using the most recent data. The last update was completed in February 2013, as part of the review.

The Commission will continue with this strategy in the current budget year and the forward years.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1.

Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Informed Government decisions on fiscal equalisationbetween the States and Territories through advice andrecommendations on the distribution of GST revenueand health care grants 2012‑13
Estimated
actual
expenses
$'000
2013 ‑14
Estimated
expenses
$'000
Program 1.1: Commonwealth Grants Commission    
Departmental expenses    
Departmental appropriation 6,417 6,402
Expenses not requiring appropriation in the budget year 107 107
Total expenses for Outcome 1 6,524 6,509
     
  2012‑13 2013‑14
Average staffing level (number) 40 40

Contributions to Outcome 1

Program 1.1: Commonwealth Grants Commission
Program objective

The Commission makes recommendations which are considered by government on the distribution of the GST pool.

Program expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Program expenses
2012‑13
Revised
budget
$'000
2013‑14
Budget
$'000
2014‑15
Forward
year 1
$'000
2015‑16
Forward
year 2
$'000
2016‑17
Forward
year 3
$'000
Annual departmental expenses          
Departmental items 6,524 6,509 6,549 6,600 6,638
Total departmental expenses 6,524 6,509 6,549 6,600 6,638
Program deliverables

The Commission makes recommendations to Government on the distribution of the GST pool.

Completion of the Report on GST Revenue Sharing Relativities — 2014 Update for consideration by the Standing Council on Federal Financial Relations.

Program key performance indicators

The major effectiveness indicators are the quality of the Commission's research, the accuracy of its calculations and the acceptance of the results it presents to government.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, program expenses and special accounts.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The Commission does not have any administered funds.

3.1.2 Special accounts

The Commission does not have any special accounts.

3.1.3 Australian Government Indigenous Expenditure

The Commission does not have any Australian Government Indigenous Expenditure.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards and Government Finance Statistics.

3.2.2 Analysis of budgeted financial statements

The financial statements have been prepared on an Australian Accounting Standards basis.

The Commission normally receives a relatively steady level of funding and its workload and expenses vary over a five year cycle.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES          
Employee benefits 5,500 5,200 5,300 5,400 5,500
Supplier 945 1,230 1,169 1,119 1,073
Depreciation and amortisation 79 79 80 81 65
Total expenses 6,524 6,509 6,549 6,600 6,638
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services - - - - -
Total revenue - - - - -
Gains          
Other gains 28 28 28 28 28
Total gains 28 28 28 28 28
Total own-source income 28 28 28 28 28
Net cost of (contribution by) services 6,496 6,481 6,521 6,572 6,610
Appropriation revenue 6,417 6,402 6,441 6,491 6,545
Surplus (deficit) attributable to the Australian Government (79) (79) (80) (81) (65)
Note: Impact of Net Cash Appropriation Arrangements 
  2012-13
$'000
2013-14
$'000
2014-15
$'000
2015-16 $'000 20116-17
$'000
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations - - - - -
plus depreciation/amortisation expenses previously funded through revenue appropriations (79) (79) (80) (81) (65)
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income (79) (79) (80) (81) (65)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS          
Financial assets          
Cash and equivalents 114 114 114 114 114
Trade and other receivables 8,007 8,007 8,007 8,007 8,007
Total financial assets 8,121 8,121 8,121 8,121 8,121
Non-financial assets          
Infrastructure, plant and equipment 514 498 482 466 466
Other 54 54 54 54 54
Total non-financial assets 568 552 536 520 520
Total assets 8,689 8,673 8,657 8,641 8,641
LIABILITIES          
Provisions          
Employees 1,732 1,732 1,732 1,732 1,732
Other 220 220 220 220 220
Total provisions 1,952 1,952 1,952 1,952 1,952
Payables          
Suppliers 185 185 185 185 185
Total payables 185 185 185 185 185
Total liabilities 2,137 2,137 2,137 2,137 2,137
Net assets 6,552 6,536 6,520 6,504 6,504
EQUITY          
Contributed equity 579 642 706 771 836
Reserves 343 343 343 343 343
Retained surpluses or accumulated deficits 5,630 5,551 5,471 5,390 5,325
Total equity 6,552 6,536 6,520 6,504 6,504
Current assets 8,175 8,175 8,175 8,175 8,175
Non-current assets 514 498 482 466 466
Current liabilities 1,386 1,386 1,386 1,386 1,386
Non-current liabilities 751 751 751 751 751

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash received       &n
bsp;
 
Goods and services - - - - -
Appropriations 6,417 6,402 6,441 6,491 6,545
Total cash received 6,417 6,402 6,441 6,491 6,545
Cash used          
Employees 5,684 5,200 5,300 5,400 5,500
Suppliers 733 1,202 1,141 1,091 1,045
Total cash used 6,417 6,402 6,441 6,491 6,545
Net cash from or (used by) operating activities - - - - -
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 63 63 64 65 65
Total cash used 63 63 64 65 65
Net cash from or (used by) investing activities (63) (63) (64) (65) (65)
FINANCING ACTIVITIES          
Cash received          
Contributed equity 63 63 64 65 65
Total cash received 63 63 64 65 65
Net cash from or (used by) financing activities 63 63 64 65 65
Net increase or (decrease) in cash held - - - - -
Cash at the beginning of the reporting period 114 114 114 114 114
Cash at the end of the reporting period 114 114 114 114 114

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement (Budget year 2013‑14)
Retained
surpluses
$'000
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
Opening balance as at 1 July 2013          
Balance carried forward from previous period 5,630 343 - 579 6,552
Adjusted opening balance 5,630 343 - 579 6,552
Comprehensive income          
Surplus (deficit) for the period (79) - - - (79)
Total comprehensive income recognised directly in equity (79) - - - (79)
Transactions with owners          
Contributions by owners          
Appropriation (departmental capital budget) - - - 63 63
Total transactions with owners - - - 63 63
Estimated closing balance as at 30 June 2014 5,551 343 - 642 6,536

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget (DCB) statement
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 - DCB 63 63 64 65 65
Total new capital appropriations 63 63 64 65 65
Provided for:          
Purchase of non-financial assets 63 63 64 65 65
Total Items 63 63 64 65 65
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriation - DCB 63 63 64 65 65
TOTAL 63 63 64 65 65
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 63 63 64 65 65
Total cash used to acquire assets 63 63 64 65 65

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
Buildings
$'000
Other
infrastructure,
plant and
equipment
$'000
Intangibles
$'000
L&B, IP&E
held for
sale
$'000
Total
$'000
As at 1 July 2013          
Gross book value - 673 - - 673
Accumulated depreciation/amortisation and impairment - 159 - - 159
Opening net book balance - 514 - - 514
Capital asset additions          
Estimated expenditure on new or replacement assets          
By purchase - appropriation ordinary annual services - 63 - - 63
Total additions - 63 - - 63
Other movements          
Depreciation/amortisation expense - 79 - - 79
Total other movements - 79 - - 79
As at 30 June 2014          
Gross book value - 736 - - 736
Accumulated depreciation/amortisation and impairment - 238 - - 238
Closing net book balance - 498 - - 498

Prepared on Australian Accounting Standards basis.