Industry, tourism and resources portfolio

from Special Accounts (estimated payments from Special Account balances)⁽¹⁾

Australian Geological Survey Organisation - s20 FMA Act⁽²⁾ (A) 167 120 Australia New Zealand Land Information Council - s20 FMA Act (A) 667 440

Total Special Account Outflows 834

Departmental appropriations

Output 1 - Geoscientific information and knowledge 96,893

Subtotal output 1 96,893 101,055 Total revenue from government (appropriations) 96,913 (C1) 101,075 Contributing to price of departmental outputs 89% 91%

Revenue from other sources Sale of goods and services 12,341 9,797 Total revenue from other sources 12,341 9,797

Total price from departmental outputs
(Total revenue from government and from other sources) 109,254 (E1) 110,872

Total estimated resourcing for outcome 1
(Total price of outputs and administered appropriations) 109,254 110,872

2003-04 2004-05 Average staffing level (number) 590 626

1: Special Account outflows are shown in the payments column of Table 1.6 (Special Accounts). The estimated payments from special account balances are provided by way of note only and do not form part of the total estimated resourcing.

2: FMA Act = Financial Management and Accountability Act 1997.

OUTCOME 1 — CONTRIBUTION OF OUTPUTS

Geoscience Australia’s geoscientific information and knowledge contributes to enhanced economic, social and environmental benefits to the community by informing decisions which impact upon resource exploitation, management of the environment and the safety and wellbeing of Australians.

Beneath its corporate outcome and output, Geoscience Australia has in place a hierarchy of more specific outcomes and outputs. This hierarchy provides a link between the corporate level and the many projects that Geoscience Australia undertakes each year and the specific products and services that it delivers.

The three key second level outcomes are:

• 
  enhanced global attractiveness of Australia’s offshore and onshore exploration and investment opportunities;
  
• 
  improved resource management and environmental protection; and
  
• 
  safer communities and infrastructure.
  

The third level in the hierarchy comprises the specific projects that Geoscience Australia undertakes each year. Each of these projects has its own outcome and supplies a series of products and/or services such as research reports, maps, datasets, and advice to government and other clients. As well as achieving its own outcome, each project contributes to the achievement of one or more of the intermediate outcomes and in turn to the corporate outcome.

Detail of this third level is published annually in Geoscience Australia’s Work Program and is available at: http://www.ga.gov.au/image_cache/GA2643.pdf.

PERFORMANCE INFORMATION FOR OUTCOME 1

Table 2.2.1 (page 127) outlines the performance information framework for outcome 1. This framework includes key performance indicators which provide the basis for measuring the overall achievement of the outcome. There are also indicators to measure efficiency achieved in delivering outputs (quality, quantity, price), and where appropriate, administered items.

Geoscience Australia will report on overall performance against this framework in its 2004-05 Annual Report.

Effectiveness - Overall achievement of the outcome (Measures, indicators and targets used as appropriate)

Performance information for administered items (including third party outputs)

Performance information for departmental outputs

Output 1

Quality

Geoscientific information and knowledge Level of uptake and satisfaction levels of key stakeholders with Geoscience Australia outputs

Quantity

At least 50 project outputs in Geoscience Australia annual work program

Price

$110.872m

EVALUATIONS

As part of its ongoing performance management, Geoscience Australia monitors the progress and effectiveness of its geoscientific projects, through the cluster leaders, to ensure that its science is high quality and has maximum impact.

Section 3: Budgeted financial statements

The budgeted financial statements for Geoscience Australia are presented in this section.

An overview of the financial statements is provided in Part A: User Guide at pages 4 - 7 of these PB Statements.

ANALYSIS OF BUDGETED FINANCIAL STATEMENTS

Departmental

Statement of Financial Performance

Geoscience Australia is budgeting for an operating loss of $2.0m for 2004-05, compared to a break-even forecast for 2003-04. The operating loss in 2004-05 is as a result of bringing forward expenditure relating to the acquisition of marine seismic data from the 2005-06 year. A corresponding operating surplus of $2.0m is budgeted for 2005-06.

Total revenues in 2004-05 are expected to increase $1.6m to $110.9m. Factors contributing to the increase are as follows:

• 
  increased appropriation funding from 2003-04 Budget Measures of $2.7m;
  
• 
  Critical Infrastructure Protection Budget Measure for 2004-05 of $0.2m;
  
• 
  transfer of appropriation funding from the Department of Finance and Administration relating to the Australian Antarctic Southern Ocean Profiling Project ($0.5m); and
  
• 
  reduction in receipts from independent sources of $2.5m, in line with the Spatial Data Access and Pricing Policy ($1.3m) and uncertainty regarding contributions from Cooperative Research Centres ($1.2m).
  

Total expenses in 2004-05 are expected to increase $3.6m (3%) to $112.9m.

The highest category of expenses is suppliers, at $54.3m (48%), although this is a reduction of $2.3m from the estimate for 2003-04. Expenditure on employees will increase $5.3m to $52.3m (46%) following recruitment to support 2003-04 Budget measures. Depreciation and amortisation is $6.3m (6%), making up the balance of budgeted expenditure for 2004-05.

Statement of Financial Position

Geoscience Australia’s budgeted total asset position for 2004-05 is $51.3m, a decrease of $0.6m from 2003-04. This results from:

• An increase in financial assets of $0.2m to $19.4m (38%):

1. 
   o Receivables up $0.4m; and
   
2. 
   o Accrued revenues down $0.2m.
   
3. 
   • A decrease in non financial assets of $0.8m to $31.9m (62%), contributed primarily by:
   
4. 
   o Land and Buildings down $0.4m; and
   
5. 
   o Infrastructure, Plant and Equipment down $0.3m.
   

Geoscience Australia’s budgeted total liabilities for 2004-05 are $25.4m, an increase of $1.4m from the estimate for 2003-04.

Employee provisions continue to be Geoscience Australia’s primary liability, increasing $1.9m to $18.6m (73%) for 2004-05.

Geoscience Australia’s budgeted financial position for 2004-05 allows for current liabilities of $14.2m, and is covered by current assets of $21.8m.

Planned capital expenditure for Geoscience Australia in 2004-05 is $5. 5m, a decrease of $2.3m over estimated actual expenditure for 2003-04. Extra capital expenditure occurred in 2003-04 to facilitate the transfer of National Mapping Division to Symonston premises ($1.8m) and a cyclical increase in IT capital expenditure.

Administered

Budgeted Revenue and Expenses

Geoscience Australia will make one grant of $0.020m to the International Geological Correlation Program in 2004-05.

Budgeted Assets and Liabilities

Geoscience Australia administers two (2) Special Accounts:

• 
  Australian Geological Survey Organisation Account (AGSO); and
  
• 
  Australia New Zealand Land Information Council Account (ANZLIC).
  

The budgeted total administered asset position for 2004-05 of $0.335m, is unchanged from the estimated actual position for 2003-04. This is the combined budgeted cash holdings of the AGSO ($0.082m) and ANZLIC ($0.253m) Special Accounts.

The budgeted total administered liabilities for 2004-05 of $0.335m, is unchanged from the estimated actual position for 2003-04 held on behalf of the parties to the Special Account arrangements.

Table 3.1: Budgeted Departmental Statement of Financial Performance
for the period ended 30 June
Estimated					Budget		Forward		Forward			Forward
actual					estimate		estimate		estimate			estimate
2003-04					2004-05		2005-06		2006-07			2007-08
$'000					$'000		$'000		$'000			$'000
REVENUE
Revenues From Ordinary Activities
Revenues from Government (K1)				96,893	101,055		103,801		107,388			98,479
Goods and services				12,341	9,797		9,772		8,718			8,029
Interest
Dividends
Revenue from sales of assets
Reversals of previous asset
write-downs
Rents
Royalties
Net foreign exchange gains
Correction of fundamental error
Other
Revenues From Ordinary Activities				109,234	110,852		113,573		116,106			106,508
EXPENSE
Expenses From Ordinary Activities
(Excluding Borrowing Costs
Expense)
Employees	47,034				52,286		54,680		57,140			59,709
Suppliers	56,509				54,254		50,179		52,648			40,660
Grants
Subsidies
Depreciation and amortisation			5,691			6,312		6,714		6,318		6,139
Write-down of assets
Value of assets sold
Net foreign exchange losses
Correction of fundamental error
Other
Expenses From Ordinary Activities
(Excluding Borrowing Costs		109,234			112,852		111,573		116,106			106,508
Expense)
Borrowing costs expense
Share of net profits or (losses) of
associates and joint ventures
accounted for using the equity
method
Correction of fundamental error
Operating Surplus or (Deficit)
From Ordinary Activities			-		(2,000)			2,000			-	-
Gain or (loss) on extraordinary items
Correction of fundamental error
Net Surplus or (Deficit)		-			(2,000)			2,000			-	-
Note: (K1) links to Table 1.1.

Table 3.1 (continued): Budgeted Departmental Statement of Financial Performance for the period ended 30 June
Estimated Budget Forward Forward	Forward
actual estimate estimate estimate	estimate
2003-04 2004-05 2005-06 2006-07	2007-08
$'000 $'000 $'000 $'000	$'000
Outside equity interests in net
surplus or (deficit)