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Annual Report 2015-16—Chapter 4: Financial performance
Summary of financial performance
Tables 9–12 give an overview of APVMA financial performance for 2015–16. Full details are in the audited financial statements on the following pages.
Income
Our total income for this financial year was $30.546 million (Table 12), an increase of $0.805 million (2.71 per cent) from the previous year.
| Income source | Income ($'000) | % |
|---|---|---|
|
Receipts from industry |
||
|
Application fees |
5 334 |
17.46 |
|
Levies |
16 702 |
54.68 |
|
Annual fees (renewal fees) |
4 984 |
16.31 |
|
Other receipts from industry |
2 495 |
8.17 |
|
Parliamentary appropriation |
732 |
2.40 |
|
Other revenue |
299 |
0.98 |
|
Total income |
30 546 |
100.00 |
| Actual available appropriation for 2015–16 ($'000) |
Payments made in 2015–16 ($'000) | Balance remaining in 2015–16 ($'000) | |
|---|---|---|---|
|
Ordinary annual services |
|||
|
Prior year reserves |
14 715 |
14 715 |
– |
|
Departmental appropriations |
732 |
732 |
– |
|
Revenue from independent sources (s. 31) |
302 |
302 |
– |
|
Total |
15 749 |
15 749 |
– |
|
Special appropriation |
34 291 |
21 883 |
10 408 |
|
Total resourcing and payments |
48 040 |
37 632 |
10 408 |
– = nil
Expenditure
Total operating expenses for 2015–16 were $ 33.855 million (Table 14), an increase of $ 0.651 million (1.96 per cent) from the previous year.
| 2015–16 actual expenditure ($'000) |
% of expenditure |
2015–16 budget (per PBS) ($'000) |
|
|---|---|---|---|
|
Employee benefits |
22 984 |
67.89 |
22 377 |
|
Supplier expenses |
9 353 |
27.63 |
9 200 |
|
Depreciation |
1 501 |
4.43 |
1 362 |
|
Other |
17 |
0.05 |
– |
|
Total expenditure |
33 855 |
100.00 |
32 939 |
– = nil; PBS = Portfolio Budget Statement
| Outcome 1: Protection of the health and safety of people, animals, the environment, and agricultural and livestock industries through regulation of pesticides and veterinary medicines | 2015–16 budget ($'000) | 2015–16 actual ($'000) | 2015–16 variance ($'000) | 2014–15 actual ($'000) |
|---|---|---|---|---|
|
Program 1.1 (APVMA) |
||||
|
Department expenses |
||||
|
Ordinary annual services (Appropriation Bill 1) |
732 |
732 |
– |
743 |
|
Revenue from independent sources (s. 31) |
488 |
299 |
189 |
557 |
|
Special appropriation |
31 719 |
32 824 |
-1 105 |
31 904 |
|
Total expenses for Outcome 1 |
32 939 |
33 855 |
-916 |
33 204 |
– = nil
Equity
The APVMA recorded a net operating deficit of $3.178 million for 2015–16. This was primarily because 2015–16 was a transition year in which the APVMA was required to run two registration systems. Our equity at 30 June 2016 was $7.312 million.
Audit results
The APVMA achieved an unqualified audit result and there were no adverse findings.
Financial reserve
Our revenue can vary significantly from year to year because of fluctuations in sales of pesticides and veterinary medicines due to changing environmental conditions. To manage this, we aim to hold a financial reserve, which forms part of our equity. Without this financial reserve, we would risk periods where our liabilities would exceed our assets (negative equity).
The financial reserve is based on three months of operating expenses and is currently set at $7.0 million.
Consultancies
In 2015–16, we entered into 14 new consultancy contracts involving total actual expenditure (including capitalisation) of $484 000. In addition, 27 ongoing consultancy contracts were active this year, involving total actual expenditure of $424 000.
Selection processes are described in terms drawn from the Commonwealth procurement guidelines. 'Direct sourcing' refers to a selection process in which neither a tender nor a panel was used. In these situations, we obtained multiple quotes, the number of which was determined by the value of the procurement.
APVMA Finance Procedure 4, 'Purchasing', outlines the number of quotes required:
|
Purchase of goods/services |
to $2000 |
1 quote |
|
Purchase of goods/services |
$2001 to $10 000 |
2 written quotes |
|
Purchase of goods/services |
$10 001 to $100 000 |
3 written quotes |
|
Purchase of goods/services |
$100 001 to $400 000 |
high-value procurement procedures |
|
Purchase of goods/services |
$400 000 and over |
tender |
Exemptions to these requirements may be approved in some circumstances.
Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.
