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Summary of financial performance

This financial summary provides an overview of the department’s financial performance for 2016–17. A comprehensive view of the department’s financial performance is provided in the Financial Statements included in Part B of the annual report.

Financial performance

Table 1: Summary of financial results of the department’s operations
Category 2016 actual $m 2017 actual $m 2018 budget $m
Total income $609.3 $636.4 $664.9
Total expenses $611.5 $632.5 $677.5
Operating result ($2.2) $3.9 ($12.7)

Operating result

The operating surplus of $3.9 million before income tax for the year ended 30 June 2017 is due to:

  • operating surplus within Queensland Shared Services of $3 million
  • timing differences between the receipt of external grant funding and deferral of expenditure commitments associated with the department’s Science projects of $1.2 million
  • return of unexpended grant funding from Biopharmaceuticals Australia of $1.2 million
  • assets and services received below fair value in connection with the fit-out of the department’s new accommodation leases in the Brisbane CBD and Fortitude Valley of $0.8 million, offset by
    • CITEC operating deficit of $2.2 million which is better than forecast mainly due to increased government revenues and successful retention of clients.

Income

Income for the department totalled $636 million for 2016–17, an increase of $27 million on the prior financial year mainly due to increased funding for Advance Queensland deliverables and the transfer of Human Resource Information System (HRIS) from Public Safety Business Agency (PSBA).

Total appropriated services revenue for the period was $306 million, and the department operated within its appropriated budget during this period. Total user charges received for the period was $303 million, which was primarily derived through ICT services by CITEC, services by Smart Service Queensland, and corporate services (including finance and payroll support) by the department’s shared service provider, QSS.

User charges and fees are the other main sources of income for the department at 48 per cent of the total. They are generated from a variety of activities, with the main clients being other Queensland Government departments.

Expenses

Expenses for the department totalled $632 million for 2016–17, an increase of $21 million on the prior financial year mainly due to Advance Queensland, HRIS and One-Stop Shop initiatives offset by GWN and Science limited life program finalisations.

Supplies and services are the department’s major expense component at 45 per cent closely followed by employee expenses at 41 per cent. Supplies and services include service delivery expenses relating to ICT (including the GWN) and shared service providers.

Financial position

The net assets position reported in the financial statements shows the net worth of the department. As at 30 June 2017, this was $138.7 million. Table 2 summarises the department’s financial position for 2016–17 and 2015– 16.

Category 2017 actual $m 2016 actual $m
Total assets $328.5 $331.4
Total liabilities  $189.8  $191.8
Total equity $138.7  $139.6

Assets

As at 30 June 2017, the department’s total assets was $328 million and the department held $219 million in property, plant and equipment, and intangible assets. Leased finance assests represent $118 million and relate mostly to the Government Wireless Network.

The value of assets decreased by $3 million to $328 million in comparison to the prior financial year mainly due to reduced receivables, partially offset by additional prepayments related to the whole-of-government Microsoft and SAP contracts managed by the department.

Liabilities

As at 30 June 2017, the department held liabilities totalling $190 million, a decrease of $2 million compared to the prior financial year.

All liabilities recognised by the department are funded and no significant contingent liabilities exist as at 30 June 2017 in respect of the department’s activities.

Administered

The department’s administered activities had an operating surplus of $6 million due to a contribution received in relation to the ICT arrangements for 1 William Street. The management of administered assets was consistent with departmental objectives. For more information, refer to the Schedule of Administered Items in Note 30 of Part B of this annual report.

Statement by the Chief Finance Officer

In accordance with the requirements of the Financial Accountability Act 2009, the Acting Chief Finance Officer has provided the Director-General with a statement confirming the financial internal controls of the department are operating efficiently, effectively and economically in conformance with Section 57 of the Financial and Performance Management Standard 2009.

The Chief Finance Officer has fulfilled the minimum responsibilities as required by the Financial Accountability Act 2009.


Income

income2017

View 2017 income data table

2017 income $636m
Revenue category $'000s %
Appropriation revenue 305,455 48.0
User charges and fees 302,914 47.6
Grants and other contributions 22,347 3.5
Other revenue, interest and gains 5,656 0.9
incomeHistoric

View income historical data table

Income history ($'000s)
Revenue category 2016-17 2015-16 2014-15 2013-14
Appropriation revenue 305,455 282,430 318,628 322,385
User charges and fees 302,914 304,176 341,389 416,866
Grants and other contributions 22,347 20,459 21,772 29,115
Other revenue, interest and gains 5,656 2,189 3,270 15,000
Total revenues 636,372 609,254 685,060 783,366

Expenses

expenses2017

View 2017 expenses data table

2017 expenses $632m
Expenses category $'000s %
Employee expenses 261,212 41.3
Supplies and services 281,912 44.6
Grants and subsidies 51,267 8.1
Depreciation and amortisation 28,616 4.5
Finance and borrowing costs 4,343 0.7
Impairment losses  2,314 0.4
Other expenses 2,789 0.4
expensesHistoric

View expenses historical data table

Expense history ($'000s)
Expenses category 2016-17 2015-16 2014-15 2013-14
Employee expenses 261,212 260,664 268,077 326,367
Supplies and services 281,912 256,348 303,108 258,673
Grants and subsidies 51,267 41,670 56,650 104,335
Depreciation and amortisation 28,616 28,468 46,046 67,851
Finance and borrowing costs 4,343 4,016 2,359 1,528
Impairment losses  2,314 - - 23,631
Other expenses 2,789 20,310 16,912 19,864
Total expenses 632,453 611,475 693,151 802,249
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Creative Commons Attribution 4.0 International (CC BY 4.0)
Last updated
9 October 2017
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