Portfolio Agency Name

Portfolio agency name

PORTFOLIO

BUDGET STATEMENT

2006-07

Portfolio agency name

ISSN 1449-5880

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Portfolio agency name

DPS ref: 06/154

8 May 2006

Senator the HonPaulCalvert / Hon DavidHawker MP
President of the Senate / Speaker of the House of Representatives
Parliament House / Parliament House
CANBERRA ACT 2600 / CANBERRA ACT 2600

Dear Mr President and MrSpeaker

Portfolio Budget Statement 2006-07

1I hereby submit the Portfolio Budget Statement in support of the 2006-07 Budget for the Department of Parliamentary Services.

2The Portfolio Budget Statement sets out:

(a)the Outcome and Outputs delivered by the department;

(b)the department's administered items; and

(c)the performance indicators to be used to assess performance against the department’s Outcome.

Yours sincerely

HilaryPenfold QC

Secretary

Parliament House
Canberra ACT 2600
Telephone: (61) 02 6277 7111 / ABN 52 997 141 147

Portfolio agency name

User guide

Contents

User guide to the portfolio budget statements

Purpose of the Portfolio Budget Statements

How to read the PB Statements

PB Statements and Budget Papers

Departmental and administered items

Appropriations in the accrual budgeting framework

Components of agency financial statements

Abbreviations and conventions

Enquiries

Departmental Overview

Departmental responsibilities

Departmental outcome statement

Departmental services

Departmental senior management structure

Australian Government Indigenous Expenditure (AGIE)

Budget Statement

Section 1: Overview

Section 2: Resources for 2006-07

Section 3: Outcome

Section 4: Other reporting requirements

Section 5: Budgeted financial statements

Glossary

User guide

User guide to the portfolio budget statements

Purpose of the Portfolio Budget Statements

The purpose of the 2006-07 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations bills, special appropriations, standing appropriations (including special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2006-07, or Appropriation Bill (Parliamentary Departments) No. 1 2006-07 for the parliamentary departments. In this sense the PB Statements are officially Budget Related Papers and are declared by the Appropriation Bills to be “relevant documents” to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates; accordingly, these entities are not reported in the PB Statements.

How to read the PB Statements

The PB Statements are presented in three sections, aligned in several ways to the Budget Papers, as outlined below.

User Guide to the Portfolio Budget Statements
An introduction, explaining the purpose of the PB Statements, the structure of the document, and styles and conventions used.
Portfolio Overview
A brief overview of the portfolio. Portfolio outcomes are depicted in a chart outlining the structure of the outcomes to which the portfolio contributes. This includes a table for Australian Indigenous Expenditures for the portfolio.
Agency Budget Statements
For each agency within the portfolio, a budget statement is presented in five sections:
Section 1: Overview / A brief overview of the agency.
Section 2: Resources / A reconciliation of agency resourcing information from the 200506MidYear Economic and Fiscal Outlook to the 200607Budget. Includes key changes to the agency’s estimates and a table of appropriations and other revenue sources for both Administered and Departmental appropriations.
Section 3: Outcomes / A brief description of the agency’s outcomes and, where applicable, Budget measures in summary form. Details the contribution of the agency’s outputs to the outcome, performance information for the outcome(s), outputs and administered activities, and planned evaluations. Notes upcoming competitive tendering and contracting that is of a material or sensitive nature. Links the resources appropriated and their application to the agency’s outputs and to Administered items.
Section 4: Other reporting requirements / Includes purchaserprovider and cost recovery components.
Section 5: Budgeted financial statements / The agency’s budgeted financial statements in accrual format, covering the Budget year, the preceding year and three outyears.
Glossary / Explains key terms.
Index / Alphabetical guide to the PB Statements.

PB Statements and Budget Papers

Comprehensive information on all government decisions announced in the Budget is in Budget Paper No. 2, Budget Measures 2006-07. The PB Statements include Budget appropriations for this Budget in each agency’s Table 2.2, 2006-07 Budget Measures.

The following chart shows the parts of PB Statements which relate to specific Budget papers.

Budget Paper / PB Statements
Budget Paper No. 1: Budget Strategy and Outlook
Statement 1: Fiscal Strategy and Budget Priorities
Overview of the fiscal and economic outlook /
Portfolio structure
(Agency) Overview
(Agency) Resources for 200607
Statement 2: Fiscal Outlook
Budget aggregates and variations to the fiscal balance estimates /
(Agency) Resources for 200607
Statement 10: AAS Financial Statements
Accrual financial statements for the general government sector /
(Agency) Budgeted financial statements
Budget Paper No. 2: Budget Measures
Budget revenue, expense and capital measures / (Agency) Resources for 200607
Budget Paper No. 3: Federal Financial Relations
Information on the Australian Government’s relations with States, Territories and local government, in particular, Specific Purpose Payments (SPPs) / (Agency) Resources for 200607
(Agency) Outcomes
Budget Paper No. 4: Agency Resourcing
Resourcing for Australian Government agencies, including Appropriation Bills / (Agency) Resources for 200607

Departmental and administered items

Under the Australian Government’s accrual-based budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies decide (departmental transactions) are separately budgeted for and reported on from transactions agencies make on behalf of others (administered transactions). This ensures that the transactions decided by agencies are reported separately from other transactions in their accounts.

Departmental items
Assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.
Administered items
Revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the government according to set government directions. Administered expenses include subsidies, grants and personal benefit payments and Administered revenues include taxes, fees, fines and excises.

Appropriations in the accrual budgeting framework

In the accrual budgeting framework, separate annual appropriations are provided for:

Departmental price of outputs appropriations: representing the Government’s funding for outputs from agencies;
Departmental capital appropriations: for investments by the Government for either additional equity or loans to agencies or payments from previous years’ outputs;
Administered expense appropriations: for the estimated administered expenses relating to an existing outcome, a new outcome or a Specific Purpose Payment to the States and Territories; and
Administered capital appropriations: for increases in administered equity through funding non-expense Administered payments.

Special appropriations fund the majority of payments from the Consolidated Revenue Fund (especially those that are entitlement driven or involve transfers to State governments). The appropriation framework is discussed further in the introduction to Budget Paper No. 4: Agency Resourcing 2006-07.

Components of agency financial statements

Reporting requirements for budgeted financial statements differ between agencies (for example, according to whether the agency participates in administered transactions). Therefore, not all agencies are required to report against all schedules.

The budgeted financial statements contain the estimates prepared in accordance with the requirements of the government’s financial budgeting and reporting framework, including the principles of the Australian Accounting Standards and Statements of Accounting Concepts, as well as specific guidelines issued by the Department of Finance and Administration. They show the planned financial performance for the 2006-07 Budget year and each of the forward years from 2007-08 to 2009-10. The statements also include the estimated actual expenditure for 2005-06 for comparative purposes.

The schedules included in the budgeted financial statements for 2006-07 are as follows.

Schedule / Purpose
Budgeted departmental income statement / Shows the expected financial results for the agency. Identifies full accrual expenses and revenues, which highlights whether the agency is operating at a sustainable level.
Budgeted departmental balance sheet / The financial position of the agency. It helps decision makers to track the management of assets and liabilities.
Budgeted departmental statement of cash flows / Provides information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Budgeted departmental statement of changes in equity — summary of movement / This is a new statement for Portfolio Budget Statements that represents the movement of parent entity (the Commonwealth) interest in the agency. The statement has been prepared to reflect the net operating result, movements of capital return and additional capital injections from the Commonwealth.
Departmental capital budget statement / Shows all planned departmental capital expenditure (capital expenditure on nonfinancial assets), whether funded through capital appropriations for additional equity or borrowings, or from funds from internal sources.
Departmental property, plant, equipment and intangibles — summary of movement / Shows budgeted acquisitions and disposals of non-financial assets during the Budget year.
Schedule of budgeted income and expenses administered on behalf of government / Identifies the main revenues and expenses administered on behalf of government.
Schedule of budgeted assets and liabilities administered on behalf of government / Shows the assets and liabilities administered on behalf of government.
Schedule of budgeted administered cash flows / Shows cash flows administered on behalf of government.
Schedule of administered capital budget / Shows details of planned administered capital expenditure.
Schedule of administered property, plant, equipment and intangibles — summary of movement / Discloses details of movements in administered non-financial assets.

Abbreviations and conventions

The following notation may be used:

NEC/nec / not elsewhere classified
- / nil
.. / not zero, but rounded to zero
na / not applicable
nfp / not for publication
$m / $ million
$b / $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

For further information about this publication please contact MsValBarrett, Assistant Secretary, Strategy and Business Services Branch, Department of Parliamentary Services, on (02) 6277 8812.

A copy of this document can be located on the Australian Government Budget website at:

User guide

Departmental Overview

Departmental responsibilities

The Department of Parliamentary Services (DPS) provides direct support to the Australian Parliament. The department reports to the Presiding Officers of the Parliament (the President of the Senate, Senator the HonPaulCalvert and the Speaker of the House of Representatives, the Hon David Hawker MP).

Departmental outcome statement

The Presiding Officers have approved the following Outcome statement for the Department of Parliamentary Services:

“Occupants of Parliament House are supported by integrated services and facilities, Parliament functions effectively and its work and building are accessible to the public.”

Departmental services

DPS provides a diverse range of services to Senators, Members, other building users and the general public, including:

information, access, analysis and advice services;
integrated reporting, information technology, broadcasting and communication services;
building, systems, landscape, artworks and furniture maintenance, engineering and other building support services;
visitor services, including management of The Parliament Shop and the Guide Service;
food, health and recreation, cleaning and other housekeeping services; and
support services to DPS and other parliamentary departments.

Departmental senior management structure

The following chart shows the DPS senior management structure, which was put in place from 1 February 2006.

User guide

Department of Parliamentary Services

Budget Statement – Resources - DPS

Australian Government Indigenous Expenditure (AGIE)

The Department of Parliamentary Services has no 2006-07 AGIE to report.

Budget Statement

Section 1: Overview

The Department of Parliamentary Services (DPS) provides a range of integrated services to support the operation of Parliament and occupants of Parliament House. DPS also facilitates access by the general public to the building and to the work of Parliament. These services are outlined in the Departmental Overview (page 1).

DPS also provides information technology services to electorate offices.

Section 2: Resources for 2006-07

The total appropriation for the department in the 2006-07 Budget is $135.269 million.

2.1: Appropriations and other resources

Table 2.1 shows the total resources from all origins for 2006-07, including appropriations. The table summarises how revenue will be applied by outcome, administered and departmental classification.

Table 2.1: Appropriations and other resources 200607 (‘000)

Department of Parliamentary Services
Agency Resourcing—2006-2007
Departmental / Administered / Total
Appropriation (Parliamentary Departments) / Receipts2 / Appropriation (Parliamentary Departments)
BillNo. 1 / (a) / BillNo. 1
$'000 / $'000 / $'000 / $'000
Parl-DPS011
Administered assets and liabilities / - / - / 13,885 / 13,885
Appropriation / 114,860 / 6,524 / - / 121,384
TOTAL / 114,860 / 6,524 / 13,885 / 135,269

(a) Departmental receipts from other sources (ie other than appropriation amounts) that are available to be spent.

Notes:

1 Outcome Parl-DPS01: Occupants of Parliament House are supported by integrated services and facilities, Parliament functions effectively and its work and building are accessible to the public.

2 Refer to Table 2.2 for breakdown of significant items of revenue.

Budget Statement – Resources - DPS

2.2: Other receipts available to be used

Table 2.2 provides details of other receipts available to be used and includes FMA s.31 receipts and resources received free of charge.

Table 2.2: Other resources available to be used

Estimated / Budget
resources / estimate
2005-06 / 2006-07
$'000 / $'000
Departmental resources
Electorate office support (FMA Act s.31) / 1,720 / 1,740
Parliament House shop sales (FMA Act s.31) / 1,410 / 1,420
Rent (FMA Act s.31) / 1,176 / 1,190
Other (FMA Act s.31) / 2,213 / 2,218
Resources received free of charge / 167 / 178
Total departmental other resources available to be used / 6,686 / 6,746

Note:

This table replaces the former table ‘Receipts from Other sources’. It represents own source receipts available for spending on departmental purposes and is prepared on an accrual basis, whereas Table 2.1 reports revenue received in cash.

2.3: Movement of administered funds from 2005-06 to 2006-07

Table 2.3: Movement of administered funds from 2005-06 to 200607

Movements of funding between years / $'000
Expected unspent funds at 30 June 2006 for the asset replacement and refurbishment project works for Parliament House. / 3,000

Note:

In 2005-06 DPS was provided with administered funding for asset replacement and refurbishment of Parliament House as administered annual operating appropriation. In accordance with budget rules, any amount unspent at 30 June 2006 will lapse. The Minister for Finance and Administration has approved an application to move the expected amount of unspent funds at 30 June 2006 from the current financial year into 2006-07.

2.4Special accounts

Table 2.4: Estimates of special account and special public money flows and balances

Opening / Closing
balance / Credits / Debits / Adjustments / balance
2006-07 / 2006-07 / 2006-07 / 2006-07 / 2006-07
2005-06 / 2005-06 / 2005-06 / 2005-06 / 2005-06
Outcome / $'000 / $'000 / $'000 / $'000 / $'000
Special accounts
Service for other Governments and Non-Agency Bodies (D) / DPS01 / Nil / Nil / Nil / Nil / Nil
Nil / Nil / Nil / Nil / Nil
Special public money
Comcare Trust Account (D) / DPS01 / 17 / 110 / 110 / Nil / 17
17 / 110 / 110 / Nil / 17
Total special accounts and public money
2006-07 Budget estimate / 17 / 110 / 110 / Nil / 17
Total special accounts and public money
2005-06 estimate actual / 17 / 110 / 110 / Nil / 17

(D) = Departmental

Budget Statement – Outcome - DPS

Section 3: Outcome

This section explains how the resources identified in Section 2 will be used to deliver outputs and administered items to contribute to the outcome for the Department of Parliamentary Services.

3.1: Summary of outcome, outputs and administered items

Output cost attribution

DPS manages with a branch structure that is aligned to the output structure. Each branch is made up of a number of cost centres that collect all direct operating costs, including depreciation, on an accrual basis. The internal overhead attribution process is completed in a number of steps. First, the costs of all corporate cost centres are allocated to sub-outputs. Then, the cost of providing internal services (ie IT and accommodation) is attributed to those sub-outputs that receive the services. This methodology ensures the department reports the total cost of services provided to clients by each sub-output.

The relationship between activities of the Department of Parliamentary Services and the outcome is summarised in Figure 1.

3.2: Outcome resourcing

Table 3.1 shows how the 2006-07 Budget appropriations translate to total resourcing for the Outcome, including administered expenses, revenue from government (appropriation), revenue from other sources (Departmental) and the total price of outputs.

3.3:Output structure changes

As foreshadowed in the 2005-06 Portfolio Budget Statement, the Department of Parliamentary Services conducted a major review of the way it develops and delivers its services and facilities. On 1 February 2006, the department was restructured with the objective of delivering a better integrated, more customer-focused department.