2016–17 Annual Report - Part 3: Report on financial performance

Financial performance

For the financial year ending 30 June 2017, ARPANSA reported an operating deficit of $3.536 million. This deficit relates to depreciation and amortisation expenses not requiring appropriation, the recognition of provisions for rectification and remediation of a legacy radiation site and the settlement of litigation.

Revenue for the year totaled $24.395 million, of which government appropriated 53 per cent of that total. The remaining 47 per cent related to regulatory licence fees and charges and the sale of goods and provision of services.

ARPANSA’s expenses totaled $27.931 million.  Employee benefits account for 61 per cent, supplier’s expenses 30 per cent, and depreciation and amortisation expense 
9 per cent.

The agency has made progress despite some challenges along the way. It will continue to review the efficiency and effectiveness by which it delivers its programs, to ensure that it is done so within available resourcing.

Management and accountability

Assets management

The agency manages non-financial assets totalling $36.893 million and its asset management strategy emphasises whole-of‑life asset management. The major categories include land, buildings, infrastructure, plant maintenance and renovation; equipment purchases and information technology infrastructure upgrades to meet future research and operational requirements.

Purchasing

The agency’s procurement policies and practices reflect the principles set out in the Commonwealth Procurement Rules (CPRs), and focus on encouraging competition, value for money, transparency and accountability as well as the efficient, effective and ethical use of Commonwealth resources. During 2016–17, ARPANSA procurement activities complied with the CPRs.

Consultants

During 2016–17, nine new consultancy contracts were entered into involving total actual expenditure of $317 815. In addition, five ongoing consultancy contracts were active during the 2016–17 year, involving total actual expenditure of $79 627.
The agency policy on selection and engaging consultants is in accordance with the CPRs, based on the core rule of value for money and underpinned by:

  • encouraging competitive and non‑discriminatory processes
  • using Commonwealth resources in an efficient, effective, economical and ethical manner that is not inconsistent with the policies of the Commonwealth
  • making decisions in an accountable and transparent manner
  • considering the risks
  • conducting a process commensurate with the scale and scope of the procurement.

ARPANSA engaged consultants where there was a requirement for specialist expertise that was not available within the agency, or where an independent assessment was required. The selection process included selection from a panel or direct engagement of a recognised or pre-eminent expert.
The annual report contains information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website tenders.gov.au.

Procurement initiatives to support small business

ARPANSA supports small business participation in the Commonwealth Government  procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available at Department of Finance

ARPANSA’s engagement with SMEs is predicated on communicating in clear, simple language and presenting information in an accessible format. Additionally, ARPANSA has adopted the use of the Commonwealth Contracting Suite for low risk procurements valued under $200 000 to reduce the burden on SMEs entering into contractual relations with the Commonwealth.

Advertising and market research

Under section 311A of the Commonwealth Electoral Act 1918 ARPANSA is required to disclose details of payments of $13 000 or more (inclusive of GST) relating to advertising and market research.
During 2016–17, expenditure on media advertising and public notices was below the threshold, and ARPANSA did not undertake market research, conduct any advertising campaigns nor purchase any services from creative advertising agencies, polling organisations or direct mail organisations.

ARPANSA resource statement - 2016–17

Ordinary annual services1

 

Actual Available appropriation for 2016-17

$'000 (a)

Payments made 2016-17

$'000 (b)

Balance Remaining 2016-17

$'000 (a)-(b)

Department appropriation      
Prior year departmental appropriation 2 - - -
Departmental appropriation 3 15,173 14,422 751
Total 15,173 14,422 751
       
Total ordinary annual serviced 15,173 14,422  
Other Services
Departmental non-operating      
Equity injections - - -
Total - - -
       
Total other services - - -
Special Accounts4
Opening balance 1,210    
Appropriation receipts5 14,422    
Non-appropriation receipts to Special Accounts 11,842    
Payments made   26,332  
Total Special Account 27,474 26,332 1,142
Total resourcing
Total resourcing 42,647 40,754  
Less departmental appropriations and equity injections drawn from above and credited to special accounts (14,422) (14,422)  
Total net resourcing for ARPANSA 28,225 26,332  

1 Appropriation Bill (No.1) 2016–17

2 Balance carried forward from previous year for annual appropriations

Includes an amount of $2.124 million in 2016–17 for Departmental Capital Budget. For accounting purposes this amount has been designated as 'contributions by owners'

4 Does not include 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM). Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM).

5 Appropriation receipts from ARPANSA's annual and special appropriations for 2016–17 included above.

ARPANSA expenses for outcome 1

Outcome 1:

Protection of people and the environment through radiation protection and nuclear safety research, policy, advice, codes, standards, services and regulation

Budget* 2016-17

$'000 (a)

Actual Expenses 2016-17

$'000 (b)

Variation 2016-17

$'000 (a)-(b)

Program 1.1: (Radiation protection and nuclear safety)      
Departmental expense       
Ordinary annual services      
(Appropriation Bill No. 1)1 13,049 13,049 -
Special Accounts 10,046 11,346 (1,300)
Expenses not requiring appropriation in the budget year 2,171 2,626 (455)
Operating loss - 910 (910)
Subtotal for Program 1.1 25,266 27,931 (2,665)
Total for outcome  25,266 27,931 (2,665)
  2015-16 2016-17

 

Average staffing level (number) 135 131  

* Full year budget including any subsequent adjustment made to the 2016–17 budget
1 Appropriation Bill (No.1) 2016–17