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Financial management
The Department has continued to focus on business improvements and on enhancing its internal financial and budgetary management practices and processes. It has commenced implementation of a budgeting and reporting tool that will provide managers with better financial and budgetary information. In addition, the Department successfully upgraded its Financial Management Information System in 2005–06 from version 4.6c to the latest version, ECC5.0. End-of-month processes have been further enhanced for business purposes with improvements to accrual information.
The ANAO has noted that the Department has a sound financial reporting framework in place that incorporates key financial and non-financial measures in monitoring its performance and financial management.
One of the Department's focal points during the year has been on meeting deadlines for external estimates updates and responding to new requirements that arose from the Commonwealth Budget process, including those relating to the Central Budget Management System.
The Department's internal financial training program was enhanced through the provision of training sessions to operational area staff on taxation, operations, chart of accounts and financial reporting. The Finance and Budgets Group also continued to provide advice to program areas and portfolio agencies on budgetary and financial matters in relation to compliance with Government policy and regulations.
Internal budgeting processes have been further streamlined to improve efficiency and make the process more user-friendly. In particular, a system for automatically extracting year-to-date actual data from the SAP financial management information system was developed for use in the formulation of Mid Year Review internal budgets.
The Department continues to monitor recently issued ANAO audit reports and implement the recommendations where appropriate.
The Department received an unqualified audit report for its financial statements for the 2005–06 financial year. This is the third consecutive year that the Department has received an unqualified audit report.
Figure 3.9 Departmental income
| Income item | 2005-06 result ($m) | % of total income |
|---|---|---|
| Revenue from Government | 119.804 | 92.81 |
| Goods and services | 3.047 | 2.36 |
| Rent | 1.305 | 1.01 |
| Other revenue | 4.518 | 3.50 |
| Other gains | 0.406 | 0.32 |
| Total | 129.080 | 100.00 |
At the end of 2005–06, the Department recorded a $14.530 million surplus predominantly due to:
- increased funding received during 2005–06 Additional Estimates (finalised in April 2006) for costs associated with administering Connect Australia, the Operational Separation of Telstra, and the Australia–China Free Trade Agreement, not being able to be fully completed by 30 June 2006;
- delays in expenditure on projects; and
- an unexpected increase in donations revenue for the National Portrait Gallery Special Account.
Members of the Finance and Budgets Group (L–R): Eva Grady, Steve Rakic, Rachelle Morgan.