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.

Table 12: Income 2015–16
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

Table 13: Agency resourcing statement 2015–16
  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.

Table 14: Expenditure 2015–16 (including comparison with PBS)
  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

Table 15: Expenses for Outcome 1
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:

Table 16: Purchasing—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.

2015–16 Financial Statements

  Independents auditors report from Australian national audit office                

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