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Overview of our financial performance

The ACIC’s financial result for 2017–18 was an operating deficit of $16.325 million.
The accounting standards require non-operating items such as unfunded depreciation expenses and capital funding income from portfolio agencies to be recognised as operating activity. With the exclusion of unfunded depreciation and capital funding, the ACIC would have realised a deficit of $8.937 million for the financial year, arising primarily from the closure of the Biometric Identification Services project.

The ACIC received an unmodified audit opinion from the Australian National Audit Office.

During 2017–18 there were no instances of significant non-compliance with the finance law.

REVENUE AND EXPENDITURE ANALYSIS 2017–18

APPROPRIATION FOR 2017–18

The ACIC’s total appropriation for 2017–18 was $91.666 million, which included $88.446 million operating budget, $2.640 million departmental capital budget and $0.580 million equity injection.

A breakdown of operating appropriation for 2017–18 is provided in the following chart.

OPERATING APPROPRIATION 2017–18

The tied funding in 2017–18 included:

  • $1.763 million funding for the Australian Gangs Intelligence Coordination Centre
  • $0.886 million to enhance physical security to all office buildings and personnel security capabilities, in response to the current heightened security threat
  • $4.803 million to develop and enhance the ACIC’s cybercrime intelligence and analysis capability in response to the 2016 Cyber Security Review recommendations
  • $0.864 million to work on the development of National Order Reference System to facilitate information sharing and enforcement of domestic violence orders between courts and police across Australia
  • $0.197 million for supporting the Australian Cyber Security Centre operating 24/7 to prevent and combat cyber security threats
  • $0.326 million for establishing a national database of rejected applications for Working with Children Checks.

OWN SOURCE INCOME 2017–18

Revenue for 2017–18 included an $88.446 million appropriation for operating budget (which includes the tied funding listed above) and $124.265 million in own source income. Own source income includes $97.737 million as a result of provision of National Policing Information Services, $10.379 million received from the Proceeds of Crime Trust Account, $14.764 million from provision of services and $1.385 million in resources received free-of-charge.

INTERNAL CONTROL FRAMEWORK

The ACIC’s internal controls that ensured compliance with our financial management responsibilities include:

  • senior management involvement in budget development, allocation and monitoring
  • internal and external reporting, including financial information to the ACIC Board on the National Policing Information Systems and Services Special Account and monthly reporting to the Department of Finance and ACIC Senior Executive
  • full engagement with the ACIC Audit Committee
  • periodic review of the Accountable Authority Instructions, policies and procedures to ensure compliance with the Public Governance, Performance and Accountability Act 2013 and related regulations
  • audit by the Australian National Audit Office and the ACIC’s Internal Audit team
  • face-to-face financial delegation and procurement training to financial delegates and relevant staff
  • National Manager Engagement to identify breaches of financial management practices under the Public Governance, Performance and Accountability Act 2013 and to provide assurance to the Accountable Authority and Chief Financial Officer
  • centralised administration of procurement, property leases, assets, travel, credit cards, fleet vehicles, mobile phones and laptops.

AGENCY RESOURCE STATEMENT 2017–18

 

Actual available appropriations for 2017–18

$’000

Payments made 2017–18

$’000

Balance remaining

$’000

(a)

(b)

(a–b)

Departmental Annual Appropriationsordinary annual services

Prior year appropriation available

48,433

48,433

-

Departmental appropriation (including Departmental Capital Budget)

91,086

38,953

52,133

Section 74 relevant agency receipts1

33,094

27,128

5,966

Total ordinary annual services

172,613

114,514

58,099

Annual Appropriation other services non-operating

Prior year appropriation available

335

335

-

Equity injections

580

262

318

Total other services

915

597

318

Total annual appropriations

173,528

115,111

58,417

National Policing Information and Services Special Account

Opening Balance

117,613

-

-

Appropriation receipts

848

-

-

Non-appropriation receipts

95,823

-

-

Payments made

-

105,558

-

Total Special Account

214,284

105,558

108,726

Less: departmental appropriations drawn from annual appropriations and credited to special accounts

(848)

(848)

-

Total resourcing and payments

386,964

219,821

167,143

1. The section 74 relevant agency receipts and the payments from departmental appropriation are adjusted for GST.

EXPENDITURE AND STAFFING BY OUTCOME

Outcome 1: To make Australia safer through improved national ability to discover, understand and respond to current and emerging crime threats and criminal justice issues, including the ability to connect police and law enforcement to essential criminal intelligence, policing knowledge and information through collaborative national information systems and services.

Budget 2017–18 $’000

Actual expenses 2017–18 $’000

Variation $’000

Outcome 1

Departmental expenses

Departmental appropriation and section 74 agency receipts

96,585

107,856

(11,271)

National Policing Information Systems and Services Special Account

81,686

103,360

(21,674)

Expenses not requiring appropriation in the budget year

8,459

17,820

(9,361)

Total Departmental expenses

186,730

229,036

(42,306)

Total Expenses for Outcome 1

186,730

229,036

(42,306)

       
 

Budget
2017–18

Actual
2017–18

 

Average staffing level (number)

776

745

 

ASSET MANAGEMENT

During 2017–18 we engaged an independent professional valuer to undertake a full value assessment process to determine whether asset book values as at 30 June 2018 had materially changed since the last fair value assessment in 2016–17 on leasehold improvements and property, plant and equipment. It is ACIC policy to undertake a full revaluation every three years and a desktop assessment each year in between.

Our asset mix at the end of 2017–18 comprised:

  • $26.699 million—leasehold improvements (includes asset under construction)
  • $14.709 million—property, plant and equipment (includes assets under construction)
  • $23.496 million—intangibles (includes assets under construction).

PROPERTY

We have ACIC offices in each capital city to support delivery of our national service. Premises in Hobart and Darwin are provided by the relevant state/territory police force and are not subject to formal lease arrangements. All other offices are under lease until at least 2022, with most due to expire from 2024 onward.

The lease on the former CrimTrac premises in Dickson, Australian Capital Territory, expired in August 2018. Following expiration of the Dickson lease, all ACIC leases are for currently in-use premises.

We have continued to engage with Victoria Police in the design of premises in their development at 311 Spencer St, Melbourne with the intention of moving the Victoria state office in 2020. This project received approval by the Minister for Finance and the Public Works Committee during 2017–18.

We continue to monitor our property performance nationally with a view to minimising our property footprint and taking advantage of efficiency initiatives, including shared opportunities. Overall the agency has a fitout density of 13 square metres per workpoint.

PURCHASING

Our approach to procuring property and services, including consultancies, is consistent with the Australian Government policy and legislation covering procurement. The Commonwealth Procurement Rules are applied to activities through the Accountable Authority Instructions and supporting operational policies and procedures, which are reviewed for consistency with the Commonwealth Procurement Framework. The procurement framework reflects the core principle governing Australian Government procurement—value for money. Our policies and procedures also focus on:

  • encouraging competitive, non-discriminatory procurement processes
  • efficient, effective, economical and ethical use of resources
  • accountability and transparency.

During 2017–18 we continued to participate in whole-of-government, coordinated procurement initiatives and used clustering and piggybacking opportunities to lower tendering costs and provide savings through economies of scale.

CONSULTANTS

During 2017–18, the ACIC entered into six new consultancy contracts, involving total actual expenditure of $0.50 million (inc. GST). In addition, five ongoing consultancy contracts were active during 2017–18, which involved consultancy expenditure of $0.04 million (inc. GST), taking the total consultancy expense to $0.54 million (inc. GST).

Consultants are typically engaged to investigate or diagnose a defined issue or problem, carry out defined reviews or evaluations, or provide independent advice, information or creative solutions to assist in the ACIC’s decision-making. Prior to engaging consultants, we take into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise.

We make decisions to engage a consultant in accordance with the Public Governance, Performance and Accountability Act 2013 and related regulations including the Commonwealth Procurement Rules and relevant internal policies.

Information on the value of contracts and consultancies is available on the AusTender website at <www.tenders.gov.au>.

ACCESS CLAUSES

During the reporting period we did not enter any contracts of $100,000 or more that excluded provision for access by the Auditor-General.

EXEMPT CONTRACTS

During the reporting period we did not publish the details of 59 contracts with a total value of $11.9 million (inc. GST) on AusTender. These contracts were not published due to the ACIC’s exemption under section 105D of the Public Governance, Performance and Accountability Act 2013.

PROCUREMENT INITIATIVES TO SUPPORT SMALL BUSINESS

The ACIC supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SMEs) and Small Enterprise participation statistics are available on the Department of Finance’s website: <www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts/>.

The ACIC recognises the importance of ensuring that small businesses are paid on time. We support the use of SMEs through various means including the use of template contracts for both low risk and higher risk procurements and compliance with the Government’s Supplier Pay on Time or Pay Interest Policy.

GRANTS AND SPONSORSHIPS

Information on grants awarded by the ACIC during the period 1 July 2017 to 30 June 2018 is available at <www.acic.gov.au/about-us/governance>.

Last updated
7 December 2018