DIMIA Annual Report 2004-05
SUMMARY OF FINANCIAL PERFORMANCE
In 2003-04, a review of the department's business processes and costs was undertaken jointly by the department and the Department of Finance and Administration, assisted by an independent efficiency expert. This review determined an appropriate funding model and level for the department and was implemented in 2004-05. Previously the department was largely funded on the basis of a Purchasing Agreement, under which actual funding requirements varied depending upon performance and delivery of outputs.
The end-of-year results for the department in 2004-05 show an operating surplus of $11.4 million, against a budgeted loss of $2.4 million. The factors contributing to this profit include a $17.2 million profit against Aboriginal and Torres Strait Islander Services (ATSIS)/Aboriginal and Torres Strait Islander Commission (ATSIC) activities and a $7.1 million profit relating to non-quarantined funding in respect of Outcomes 1, 2 and 3. These are offset by a $12.9 million loss relating to quarantined funding, which is essentially those areas of immigration and multicultural affairs operations which are volatile and difficult to predict.
There were two significant factors impacting on the department's financial outcome for 2004-05:- There were no unauthorised boat arrivals in 2004-05. This has resulted in a $64 million net reduction to expenses relative to budget ($45 million against Outcome 1 Administered Expenses and $19 million against departmental outputs- Output 1.5).
- The proclamation of the ATSIC Amendment Act 2005 on 24 March 2005 transferred the operations of ATSIC to a range of Commonwealth government agencies including the department. The items that the department received included the following: the Land Fund and Aboriginal Benefits account; ATSIC cash, fixed assets and trust accounts; and any residual assets and liabilities not otherwise specified in the ATSIC Amendment Act 2005. At the time of budget, it was anticipated that the department would be responsible for this outcome with the abolition of ATSIC by legislation effective 1 July 2004 rather than the actual date of 24 March 2005.
As a consequence, Outcome 4 is significantly below budget for 2004-05.
Developments since the end of the financial year
From 1 July 2004 to 23 March 2005, the Aboriginal and Torres Strait Islander Services (ATSIS) continued as an executive agency and provided support to ATSIC. The continuation of ATSIS enabled the ongoing use of ATSIC assets by the Commonwealth pending the passing of the Aboriginal and Torres Strait Islander Commission Amendment Bill 2004, into legislation.
With the commencement of the ATSIC Amendment Act 2005, ongoing support for ATSIC was no longer required. In addition, the assets of ATSIC were transferred to other agencies of the Commonwealth. All remaining staff of ATSIS were transferred to other Commonwealth agencies. Therefore, there was no ongoing need to retain ATSIS as an executive agency. ATSIS was therefore abolished and de-prescribed under the Financial Management and Accountability Act 1997 on 1 July 2005.
In the same way the residual assets and liabilities of ATSIC were vested in the department on behalf of the Commonwealth, the residual assets and liabilities of ATSIS were transferred to the department. Arrangements are in place for the department to meet the residual financial obligations of ATSIS. No contingent matters arose as a consequence of the abolition of ATSIS.
Figure 3: Resource summary
Figure 3: Resource summary continued
Figure 3: Resource summary continued
