DIMIA Annual Report 2002-03
DISCUSSION/ANALYSIS OF FINANCIAL PERFORMANCE
Since 2001-02, the department has been largely funded on the basis of a Purchasing Agreement with the Department of Finance and Administration (Finance) under which actual funding depended upon performance and delivery of outputs.
The dramatic reduction in unauthorised boat arrivals and the changed international security environment led to the need to review the Purchasing Agreement and the basis on which DIMIA funding was determined.
The Purchasing Agreement no longer provides an appropriate basis for determining resource requirements.
A comprehensive review of the department's business processes and costs will inform DIMIA's resourcing requirements beyond 2003-04 and will be considered in the 2004-05 Budget.
Administered expenses in Outcome 1 in 2002-03 show over-expenditure due to an increase in detention debts written-off, from a budget of $37 million to an actual result of $90 million (prior year actual $52 million).
The increase is due to an accrual of detention debts for detainees currently in detention centres, which had not been included in financial statements in prior years. All the accrued debts have been written-off, as it is unlikely that they will be recovered.
The actual expenditure excluding the debt write-off is $20 million against a budget of $31 million (total budget of $68 million less detention debts write-off budget of $37 million). The under-expenditure is mostly due to:
- budget of $5.2 million for Initiatives to address the situation of displaced Afghan and Iraqi refugees, has been re-phased to the 2003-04 financial year
- under-expenditure of $2.9 million on payments to the Red Cross Society for the Asylum Seeker Assistance Scheme due to faster than anticipated processing of the East Timorese Protection visa caseload, which resulted in a reduction in expenditure
- under-expenditure of $1.5 million on Reintegration Allowances due to lower than anticipated take up rates in relation to this initiative.
Over-expenditure in departmental expenses for Output 1.1 Non-Humanitarian Entry and Stay is due to an increase in activity levels during the year, which required more resources to be deployed in this area.
Output 1.3 Enforcement of Immigration Law over-expenditure is largely due to the write-off of detention assets, mostly representing buildings destroyed in fires during riots in the past 12 months valued at approximately $10 million.
There was also an increase in levels of activity, which required more resources to be deployed.
Under-expenditure in Output 1.5 Offshore Asylum Seeker Management is a result of fewer unauthorised boat arrivals than anticipated.
Administered expenses in Outcome 2 in 2002-03 show under-expenditure due to fewer than anticipated numbers of students undertaking English language programs.
Over-expenditure in departmental expenses for Output 2.1 Settlement Services is due to a major increase in activity levels of approximately 67 per cent, which required more resources to be deployed in this area.
Settlement services required significant additional effort in 2002-03 and the changing caseload and increase in numbers is expected to continue in 2003-04.
Administered expenses in Outcome 3 in 2002-03 show over-expenditure because costs in key litigation areas exceeded original budget estimates.