Financial performance summary

Overall the financial performance of the department remains strong despite significant financial challenges during the year.

Departmental revenue of $625.6 million was received in 2008–09, which was significantly less than expected (3%). This was a reduction of $21.7 million from 2007–08. The impact of the global financial crisis on throughput for some of the largest cost-recovered elements of the department was the main factor behind the decrease in expected revenues.

The department has recorded an operating deficit of $17.4 million (incurring $655.4 million in expenses) for the year ended 30 June 2009, compared with a small surplus ($0.7 million) in 2007–08. The deficit is mainly due to the lower than expected revenues received in AQIS import and export programs as a result of reduced activity stemming from the impacts of the global financial crisis.

The composition of total resourcing for the department in 2007–08 and 2008–09 is shown in the agency resource statement at Appendix 10.

Administered expenses were 3% under budget, which was a strong result given the demand-driven nature of some of our major programs.

Administered expenses total $1.701 billion, a reduction of $1.12 billion from 2007–08. The decrease was due to reductions in expenses incurred in demand-driven programs and the transfer of responsibility for the delivery of payments to the states and territories to the Treasury in January 2009.

The 2008–09 financial statements were signed by the Auditor-General without qualification or significant finding.

The agency resource statement at Appendix 10 outlines the allocation of resources in 2008–09 under the department’s revised output structure adopted in the 2008–09 Portfolio Budget Statements.

The agency resource statement also provides information on the average staffing level for 2008–09, which have remained in line with budget forecasts.

The next financial year will see further financial challenges for the department as the economy continues to change and resourcing from government and through recoverable operations continues to be tight, but the department is confident that the strength of its financial position and existing frameworks will set the platform for sustainable results into the future.

Biosecurity Australia

Biosecurity Australia generated an operating surplus of $0.06 million in 2008–09 ($0.10 million in 2007–08), which represented 0.3% of agency appropriation revenue. The surplus was mainly attributable to lower expenditure on suppliers, including consultancies and IT and communications.

The composition of total resourcing for Biosecurity Australia in 2007–08 and 2008–09 is shown in Appendix 10. The appendix also provides information on the average staffing level for 2008–09.

The solvency of the agency remained sound, with a reported ratio of 1 to 5 in 2008–09 (1 to 5 in 2007–08).

The 2008–09 financial statements were signed by the Auditor-General without qualification. The results of the audit again reflected the sound financial management framework in place in Biosecurity Australia.

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