Commonwealth Grants Commission

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Commonwealth Grants Commission (the Commission) operates under the Commonwealth Grants Commission Act 1973. It is a statutory authority whose role is to provide advice to the Australian Government in response to terms of reference.

The main subject on which the advice is sought is the allocation among the States of the goods and services tax (GST) revenue. Terms of reference for these inquiries are decided by the Australian Government in consultation with the States. The reports are considered at a meeting of the Council on Federal Financial Relations.

From time to time, the Commission is also asked to report on the finances of Australia's external territories, local government matters and the financing of services for Indigenous people. Terms of reference for those inquiries are developed by relevant Australian Government agencies and the reports are considered by their Ministers.

1.2 Agency resource statement

Table 1.1 shows the total resources for the Commission.

Table 1.1: Commonwealth Grants Commission resource statement — Budget estimates for 2014­15 as at Budget May 2014

	Estimate of prior year amounts available in 2014‑15 $'000	+	Proposed at Budget 2014‑15 $'000	=	Total estimated 2014‑15 $'000	Actual available appropriation 2013‑14 $'000
Ordinary annual services
Departmental appropriation
Prior year departmental appropriation	2,200	3	-		2,200	-
Departmental appropriation2	-		6,399	1	6,399	6,461
Total net resourcing for the Commission	2,200		6,399		8,599	6,461

1. Appropriation Bill (No. 1) 2014‑15.

2. Includes $0.1 million in 2014‑15 for the departmental capital budget (also refer to Table 3.2.5).

3. Estimated adjusted balance carried forward from previous year.

1.3 Budget measures

Budget measures relating to the Commission are summarised below.

Table 1.2: Commonwealth Grants Commission 2014‑15 Budget measures

	Programme	2013‑14 $'000	2014‑15 $'000	2015‑16 $'000	2016‑17 $'000	2017‑18 $'000
Expense measures
Efficiency Dividend - temporary increase in the rate1	1.1	-	(66)	(147)	(229)	(229)
Efficiency Dividend - a further temporary increase of 0.25 per cent	1.1	-	(16)	(32)	(48)	(48)
Public Service efficiencies2	1.1	(2)	(9)	(20)	(27)	(27)
Reforms to APS management and efficient procurement of agency software1	1.1	(2)	(8)	(19)	(27)	(27)
Total expense measures		(4)	(99)	(218)	(331)	(331)

1. This measure was included in the Economic Statement 2013 and has not previously appeared in a portfolio statement.

2. This measure was included in Budget Paper No. 2, Budget Measures 2013‑14 and has not previously appeared in a portfolio statement.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the budget and forward years.

The Commission's outcome is described below, specifying the strategy, programme objective, programme deliverables and programme key performance indicators used to assess and monitor the performance of the Commission.

Note: Recent terms of reference for the Commission have not required advice and recommendations on health care grants.

Outcome 1 strategy

The Commission's strategy is based on its role to provide advice to the Australian Government in response to terms of reference. Five‑yearly reviews of the methods used to calculate the recommended State shares of GST revenue is the major activity associated with this outcome. The last five‑year review was completed in February 2010. Between these reviews the shares are updated annually using the most recent data. The last update was completed in February 2014.

The Commission will continue with this strategy in the current budget year and the forward years.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: Informed Government decisions on fiscal equalisation between the States and Territories through advice and recommendations on the distribution of GST revenue and health care grants	2013‑14 Estimated actual expenses $'000	2014‑15 Estimated expenses $'000
Programme 1.1: Commonwealth Grants Commission
Departmental expenses
Departmental appropriation	6,398	6,336
Expenses not requiring appropriation in the budget year	107	108
Total expenses for Outcome 1	6,505	6,444
	2013‑14	2014‑15
Average staffing level (number)	40	40

Contributions to Outcome 1

Programme 1.1: Commonwealth Grants Commission

Programme objective

The Commission makes recommendations which are considered by Government on the distribution of the GST pool.

Programme expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Programme expenses

	2013‑14 Revised budget $'000	2014‑15 Budget $'000	2015‑16 Forward year 1 $'000	2016‑17 Forward year 2 $'000	2017‑18 Forward year 3 $'000
Annual departmental expenses
Departmental items	6,505	6,444	6,370	6,296	6,343
Total departmental expenses	6,505	6,444	6,370	6,296	6,343

Programme deliverables

The Commission makes recommendations to Government on the distribution of the GST pool.

Completion of the Report on GST Revenue Sharing Relativities — 2014 Update for consideration by the Council on Federal Financial Relations.

Programme key performance indicators

The major effectiveness indicators are the quality of the Commission's research, the accuracy of its calculations and the acceptance of the results it presents to government.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2014‑15. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, programme expenses and special accounts.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The Commission does not have any administered funds.

3.1.2 Special accounts

The Commission does not have any special accounts.

3.1.3 Australian Government Indigenous expenditure

The Commission does not have any Australian Government Indigenous expenditure.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards and Government Finance Statistics.

3.2.2 Analysis of budgeted financial statements

The financial statements have been prepared on an Australian Accounting Standards basis.

The Commission normally receives a relatively steady level of funding and its workload and expenses vary over a five year cycle.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

	Estimated actual 2013‑14 $'000	Budget estimate 2014‑15 $'000	Forward estimate 2015‑16 $'000	Forward estimate 2016‑17 $'000	Forward estimate 2017‑18 $'000
EXPENSES
Employee benefits	5,200	5,300	5,400	5,500	5,500
Supplier	1,226	1,064	889	731	780
Depreciation and amortisation	79	80	81	65	63
Total expenses	6,505	6,444	6,370	6,296	6,343
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services	-	-	-	-	-
Total revenue	-	-	-	-	-
Gains
Other gains	28	28	28	28	28
Total gains	28	28	28	28	28
Total own-source income	28	28	28	28	28
Net cost of (contribution by) services	6,477	6,416	6,342	6,268	6,315
Appropriation revenue	6,398	6,336	6,261	6,203	6,252
Surplus (deficit) attributable to the Australian Government	(79)	(80)	(81)	(65)	(63)
Note: Impact of Net Cash Appropriation Arrangements
	2013‑14 $'000	2014‑15 $'000	2015‑16 $'000	2016‑17 $'000	2017‑18 $'000
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations	-	-	-	-	-
plus depreciation/amortisation expenses previously funded through revenue appropriations	(79)	(80)	(81)	(65)	(63)
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income	(79)	(80)	(81)	(65)	(63)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

	Estimated actual 2013‑14 $'000	Budget estimate 2014‑15 $'000	Forward estimate 2015‑16 $'000	Forward estimate 2016‑17 $'000	Forward estimate 2017‑18 $'000
ASSETS
Financial assets
Cash and equivalents	107	107	107	107	107
Trade and other receivables	2,214	2,214	2,214	2,214	2,214
Total financial assets	2,321	2,321	2,321	2,321	2,321
Non-financial assets
Infrastructure, plant and equipment	355	338	321	319	319
Other	53	53	53	53	53
Total non-financial assets	408	391	374	372	372
Total assets	2,729	2,712	2,695	2,693	2,693
LIABILITIES
Provisions
Employees	1,476	1,476	1,476	1,476	1,476
Other	216	216	216	216	216
Total provisions	1,692	1,692	1,692	1,692	1,692
Payables
Suppliers	160	160	160	160	160
Total payables	160	160	160	160	160
Total liabilities	1,852	1,852	1,852	1,852	1,852
Net assets	877	860	843	841	841
EQUITY
Contributed equity	642	705	769	832	895
Reserves	343	343	343	343	343
Retained surpluses or accumulated deficits	(108)	(188)	(269)	(334)	(397)
Total equity	877	860	843	841	841
Current assets	2,374	2,374	2,374	2,374	2,374
Non-current assets	355	338	321	319	319
Current liabilities	1,181	1,181	1,181	1,181	1,181
Non-current liabilities	671	671	671	671	671

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows (for the period ended 30 June)

	Estimated actual 2013‑14 $'000	Budget estimate 2014‑15 $'000	Forward estimate 2015‑16 $'000	Forward estimate 2016‑17 $'000	Forward estimate 2017‑18 $'000
OPERATING ACTIVITIES
Cash received
Goods and services	-	-	-	-	-
Appropriations	12,579	6,336	6,261	6,203	6,252
Total cash received	12,579	6,336	6,261	6,203	6,252
Cash used
Employees	5,200	5,300	5,400	5,500	5,500
Suppliers	7,379	1,036	861	703	752
Total cash used	12,579	6,336	6,261	6,203	6,252
Net cash from or (used by) operating activities	-	-	-	-	-
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment	63	63	64	63	63
Total cash used	63	63	64	63	63
Net cash from or (used by) investing activities	(63)	(63)	(64)	(63)	(63)
FINANCING ACTIVITIES
Cash received
Contributed equity	63	63	64	63	63
Total cash received	63	63	64	63	63
Net cash from or (used by) financing activities	63	63	64	63	63
Net increase or (decrease) in cash held	-	-	-	-	-
Cash at the beginning of the reporting period	107	107	107	107	107
Cash at the end of the reporting period	107	107	107	107	107

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement (Budget year 2014­15)

	Retained surpluses $'000	Asset revaluation reserve $'000	Other reserves $'000	Contributed equity/ capital $'000	Total equity $'000
Opening balance as at 1 July 2014
Balance carried forward from previous period	(108)	343	-	642	877
Adjusted opening balance	(108)	343	-	642	877
Comprehensive income
Surplus (deficit) for the period	(80)	-	-	-	(80)
Total comprehensive income recognised directly in equity	(80)	-	-	-	(80)
Transactions with owners
Contributions by owners
Appropriation (departmental capital budget)	-	-	-	63	63
Total transactions with owners	-	-	-	63	63
Estimated closing balance as at 30 June 2015	(188)	343	-	705	860

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget (DCB) statement

	Estimated actual 2013‑14 $'000	Budget estimate 2014‑15 $'000	Forward estimate 2015‑16 $'000	Forward estimate 2016‑17 $'000	Forward estimate 2017‑18 $'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 - DCB	63	63	64	63	63
Total new capital appropriations	63	63	64	63	63
Provided for:
Purchase of non-financial assets	63	63	64	63	63
Total Items	63	63	64	63	63
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriation - DCB	63	63	64	63	63
TOTAL	63	63	64	63	63
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE
Total purchases	63	63	64	63	63
Total cash used to acquire assets	63	63	64	63	63

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental

	Buildings $'000	Other infrastructure, plant & equipment $'000	Intangibles $'000	L&B, IP&E held for sale $'000	Total $'000
As at 1 July 2014
Gross book value	-	834	-	-	834
Accumulated depreciation/amortisation and impairment	-	479	-	-	479
Opening net book balance	-	355	-	-	355
Capital asset additions
Estimated expenditure on new or replacement assets
By purchase - appropriation ordinary annual services	-	63	-	-	63
Total additions	-	63	-	-	63
Other movements
Depreciation/amortisation expense	-	80	-	-	80
Total other movements	-	80	-	-	80
As at 30 June 2015
Gross book value	-	897	-	-	897
Accumulated depreciation/amortisation and impairment	-	559	-	-	559
Closing net book balance	-	338	-	-	338

Prepared on Australian Accounting Standards basis.