Summary of financial performance
As a result of the Palmer and Comrie Reviews, we have received additional funding to allow us to deliver against a change agenda which includes a greater focus on client service, border security, and also implementation of the Systems for People programme. The outcomes and outputs statement will be amended in 2006-07 to reflect this focus and financial reporting will be managed to support this.
The Minister for Finance and Administration agreed that DIMA could budget for a loss in 2005-06, allowing it to draw from cash reserves to support the implementation of new policy. Accordingly, in 2005-06 we made an operating loss of $39.5 million against an approved loss of $28.4 million. The factors contributing to the increase in the expected loss were:
- additional costs related to the Palmer projects
- the start of Systems for People Programme planning
- an increase in more complex migrant caseloads including a higher focus on Interventions cases
- refugee caseloads included a high proportion of difficult cases requiring more intensive investigations
- higher costs for security checks
- higher spending on the Immigration Advice and Application Assistance Scheme (IAAAS) due to a significantly higher number of applicants
- an increased number of Illegal Foreign Fishers as well as higher detention contract costs due to additional case managers for people in immigration detention and a greater variety of accommodation solutions for these people
- a larger investment in Citizenship promotion and Cultural Awareness and cost increases in relation to additional checks.
From 2005-06, we have been implementing a financial management regime which will allow for improved estimation of actual expenditure against budget on a monthly basis. This is expected to assist in planning within the department as well as contribute to improved management of the wider estimates of expenditure for government.
During 2005-06, all Indigenous functions were transferred to the renamed Department of Families, Community Services and Indigenous Affairs (FaCSIA). The date of the Administrative Arrangement Order causing the transfer was 27 January 2006 and, as such, the financial statements for the department include a half year effect of the inclusion of the Indigenous funds. Total Indigenous funding retained in the department for the year was $82.298 million against costs of $82.442 million. The Office of Indigenous Policy Coordination had budgeted for a loss in 2005-06 of $4.7 million. With the transfer to FaCSIA, the end of year outcome against this will be shown in those financial statements.
Developments since the end of the financial year
There have been no significant developments since the end of financial year.
Table 2: Resources summary
| Budget(a) 2005-06 $'000s | Actual expenses 2005-06 $'000s | Budget 2006-07 $'000s | |
|---|---|---|---|
| Outcome 1 - Contributing to Australia's society and its economic advancement through the lawful
and orderly entry and stay of people |
|||
| Administered expenses - (including third party outputs) | 116 841 | 83 860 | 72 924 |
| Total administered expenses | 116 841 | 83 860 | 72 924 |
| Price of departmental outputs | |||
| Output 1.1: Migration and temporary entry | 337 428 | 361 031 | 388 871 |
| Output 1.2: Refugee and humanitarian entry and stay | 63 404 | 70 091 | 60 141 |
| Output 1.3: Enforcement of immigration law | 407 155 | 429 114 | 510 220 |
| Output 1.4: Safe haven | 309 | 346 | 332 |
| Output 1.5: Offshore asylum seeker management | 53 463 | 53 463 | 69 642 |
| Total Outcome 1 | 861 758 | 889 658 | 1 029 206 |
| Revenue from government (appropriation) | |||
| for departmental outputs | 830 554 | 831 392 | 992 488 |
| Revenue from other sources | 31 204 | 31 074 | 36 718 |
| Total price of outputs | 861 758 | 862 466 | 1 029 206 |
| Total for Outcome 1 | |||
| (Total price of outputs & administered expenses) | 978 599 | 946 326 | 1 102 130 |
| 2005-06 | 2006-07 | ||
| Average staffing levels | 5 178 | 5 215 | |
| Outcome 2 - Promote a society which values Australian citizenship, appreciates cultural diversity,
and enables migrants to participate equitably |
|||
| Administered expenses - (Including third party outputs) | 169 371 | 173 889 | 189 942 |
| Total administered expenses | 169 371 | 173 889 | 189 942 |
| Price of departmental outputs | |||
| Output 2.1: Settlement services | 90 353 | 86 261 | 106 160 |
| Output 2.2: Translating and interpreting services | 11 505 | 16 253 | 14 754 |
| Output 2.3: Australian citizenship | 27 834 | 40 331 | 35 892 |
| Output 2.4: Promoting the benefits of cultural diversity | 16 351 | 21 649 | 16 629 |
| Total Outcome 2 | 146 043 | 164 494 | 173 435 |
| Revenue from government (appropriation) | |||
| for departmental outputs | 133 091 | 134 868 | 156 412 |
| Revenue from other sources | 12 952 | 17 423 | 17 023 |
| Total price of outputs | 146 043 | 152 291 | 173 435 |
| Total for Outcome 2 | |||
| (Total price of outputs & administered expenses) | 315 414 | 326 178 | 363 377 |
| 2005-06 | 2006-07 | ||
| Average staffing levels | 777 | 784 | |
| Outcome 3 - Innovative whole-of-government policy on Indigenous affairs(b) |
|||
| Administered expenses - (Including third party outputs) | 81 077 | 79 971 | - |
| Total administered expenses | 81 077 | 79 971 | - |
| Price of departmental outputs | |||
| Output 3.1: Indigenous policy | 63 954 | 63 898 | - |
| Output 3.2: Services to Indigenous Australians | 15 700 | 18 544 | - |
| Total Outcome 3 | 79 654 | 82 442 | - |
| Revenue from government (appropriation) | |||
| for departmental outputs | 64 932 | 64 932 | - |
| Revenue from other sources | 14 722 | 17 366 | - |
| Total price of outputs | 79 654 | 82 298 | - |
| Total for Outcome 3 | |||
| (Total price of outputs & administered expenses) | 160 731 | 162 269 | - |
| 2005-06 | 2006-07 | ||
| Average staffing levels | 518 | - | |
(a) Full year budget, including additional estimates, and s.32 adjustments.
(b) The department's former Outcome 3 has been transferred to the Families, Community Services and Indigenous
Affairs Portfolio as a result of the Administrative Arrangement Order dated 27 January 2006.