2017–18 Annual Report - Part 3: Report on financial performance

Financial performance

For the financial year ending 30 June 2018, ARPANSA reported an operating deficit of $2.407m. This deficit relates to depreciation and amortisation expenses not requiring appropriation.

Revenue for the year totalled $24.303m, of which government appropriated 53 per cent of this 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 totalled $26.710m. Employee benefits account for 62 per cent of this total, supplier’s expenses 27 per cent and depreciation and amortisation expense 11 per cent.

The Agency will continue to review the efficiency and effectiveness by which it delivers its program, to ensure it operates within available resourcing.

Assets management

The Agency manages non-financial assets totalling $38.3 million and its asset management strategy emphasises whole-of‑life asset management. The capital investment plan is reviewed annually to ensure appropriate prioritisation of building infrastructure and renovation investment and that laboratory equipment purchases and IT infrastructure upgrades 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 2017–18, ARPANSA procurement activities complied with the CPRs.

Consultants

During 2017–18, ten new consultancy contracts were entered into involving total actual expenditure of $259 767. In addition, six ongoing consultancy contracts were active during the 2017–18 year, involving total actual expenditure of $184 159.

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 www.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 on the Department of Finance website: finance.gov. au/procurement/statistics-on-commonwealthpurchasing- contracts/

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 paid advertising and market research.

During 2017–18, 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 or direct mail organisations.

ARPANSA resource statement 2017–18

 

Actual Available appropriation for 2017-18

$'000 (a)

Payments made 2017-18

$'000 (b)

Balance remaining 2017-18

$'000 (a)-(b)

Ordinary annual services1      
Departmental appropriation      
Prior year departmental appropriation2 751 751 -
Departmental appropriation3 14,794 13,320 1,474
Total 15,545 14,071 1,474
       
Total ordinary annual services 15,545 14,071  
       
Other services      
Departmental non-operating      
Equity injections 5,000 1,200 3,800
Total 5,000 1,200 3,800
       
Total other services 5,000 1,200  
       
Special Accounts4      
Opening balance 1,143    
Appropriation receipts5 15,271    
Non-appropriation receipts to Special Accounts 12,393    
Payments made   27,707  
Total Special Account 28,807 27,707 1,100
       
Total resourcing 49,352 42,978  
       
Less departmental appropriations and equity      
Injections drawn from the above (15,271) (15,271)  
and credited to special accounts      
Total net resourcing for ARPANSA 34,081 27,707  

1Appropriation Bill (No.1) 2017–18

2Balance carried forward from previous year for annual appropriations

3Includes an amount of $1.955 million in 2017–18 for Departmental Capital Budget. For accounting purposes this amount has been designated as 'contributions by owners'

4Does 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).

5Appropriation receipts from ARPANSA's annual and special appropriations for 2017–18 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*
2017–18
$'000
(a)
Actual
expenses
2017–18
$'000
(b)
Variation
2017–18
$'000
(a)-(b)
       
Program 1.1: (Radiation protection and nuclear safety)      
Departmental expense      
Ordinary annual services      
(Appropriation Bill No. 1)1 12,839 12,420 419
Special Accounts 9,712 11,382 (1,670)
Expenses not requiring appropriation in the budget year 2,570 2,908 (338)
       
Subtotal for Program 1.1 25,121 26,710 (1,589)
       
Total for outcome 25,121 26,710 (1,589)
       
  2016–17 2017–18  
Average staffing level (number) 131 128  

*Full year budget including any subsequent adjustment made to the 2017–18 budget

1Appropriation Bill (No.1) 2017–18