PrintSummary of financial performance
The department's budget was increased in 2007–08 to allow for the processing of an increased number of visa applications and the continuation of the reform agenda following the Palmer and Comrie reports. This enabled continued emphasis on client service, supporting our staff and the second full year of the delivery of the Systems for People program.
The department has an agreed funding model with government which provides additional funding for both growth in workloads and verifiable increases in the cost of services we deliver. The department and the Department of Finance and Deregulation are currently finalising adjustments to the department's funding in 2008–09 and forward years, resulting from 2007–08 activity and cost movements. Increased expenditure in 2007–08 compared to 2006–07 related to:
- growth in the number of students entering the country
- an increase in the volume and complexity of the migration caseload relating to family and skilled migration
- an increase in the proportion of difficult and complex cases in the refugee caseload.
Recognising ongoing financial pressures on the department, the former government initiated a Financial Health Review of the department. The outcomes of the review were considered by the government in the context of the 2008–09 Federal Budget and this saw several measures announced.
Additionally, the department put in place a number of internal measures to minimise expenditure in 2007–08. The measures resulted in the delivery of an operating surplus for 2007–08.
The financial statements show a surplus of $35 million for the 2007–08 financial year. This follows a loss of approximately $40 million in both the 2006–07 and 2005–06 financial years.
The department's balance sheet as at 30 June 2008 shows current assets of $355 million ($169 million in 2006–07) against current liabilities of $275 million ($264 million in 2006–07). The current assets figure includes $334 million in cash, appropriation and other receivables, while the current liabilities include $160 million accounts payable and the balance relates to leave provisions. These figures are a major improvement on the 2006–07 position and have strengthened the financial sustainability of the department. The surplus is primarily attributed to:
- unspent funds for quarantined activities, predominantly related to lower than forecasted activity levels in offshore detention
- a series of management initiated productivity savings across National Office and the service delivery network to enable the department to manage effectively with reduced resources
- late commencement of some new policy initiatives during 2007–08.
The department's fixed assets have increased from $528 million in 2006–07 to
$887 million in 2007–08. The growth is attributable to:
- the transfer of approximately $317 million relating to the Christmas Island Detention Centre from the Department of Finance and Deregulation
- approximately $97 million capitalisation of the 2007–08 expenditure on software development for Systems for People and other projects.
| Budget ($'000s) | Actual ($'000s) | |
|---|---|---|
| Outcome 1: Contributing to Australia's society and its economic advancement through the lawful and orderly entry and stay of people | ||
| Total administered expenses (including third party outputs) | $86 324 | $83 012 |
| Price of departmental outputs | ||
| Output 1.1 Migration and temporary entry | $481 590 | $482 391 |
| Output 1.2 Refugee and humanitarian entry and stay | $95 715 | $84 166 |
| Output 1.3 Border security | $202 818 | $192 313 |
| Output 1.4 Compliance | $117 624 | $117 289 |
| Output 1.5 Detention | $139 462 | $139 030 |
| Output 1.6 Offshore asylum seeker management | $62 998 | $62 439 |
| Output 1.7 Safe Haven | $315 | $0 |
| Output 1.8 Systems for People | $71 209 | $91 733 |
| Total Outcome 1 | $1 171 731 | $1 169 361 |
| Revenue from government (appropriation) for departmental outputs | $1 138 778 | $1 137 589 |
| Revenue from other sources | $32 953 | $31 772 |
| Total price from outputs | $1 171 731 | $1 169 361 |
| Total for Outcome 1 (total price from outputs and administered expenses) | $1 258 055 | $1 252 373 |
| Outcome 1 2007–08 average staffing levels | 6 187 | |
| Outcome 2: A society which values Australian citizenship and social cohesion, and enables migrants and refugees to participate equitably | ||
| Total administered expenses (including third party outputs) | $205 710 | $196 779 |
| Price of departmental outputs | ||
| Output 2.1 Settlement services | $116 786 | $117 874 |
| Output 2.2 Translating and interpreting services | $18 161 | $17 420 |
| Output 2.3 Australian citizenship | $77 664 | $78 161 |
| Output 2.4 Promoting the benefits of a united and diverse society | $15 414 | $15 510 |
| Output 2.5 Systems for People | $13 855 | $13 927 |
| Total Outcome 2 | $241 880 | $242 892 |
| Revenue from government (appropriation) for departmental outputs | $221 588 | $222 777 |
| Revenue from other sources | $20 292 | $20 115 |
| Total price from outputs | $241 880 | $242 892 |
| Total for Outcome 2 (total price from outputs and administered expenses) | $447 590 | $439 671 |
| Outcome 2 2007–08 average staffing levels | 1 020 | |
