ACCC and AER annual report 2013-14

Finance and staffing snapshot

The ACCC received an unqualified audit report on the 2013−14 financial statements from the Australian National Audit Office. These statements can be found in part 5.

The ACCC’s net cost of services for 2013−14 was $181.9 million, with revenue from Government of $179.5 million, resulting in an operating loss of $2.4 million. This result was impacted upon by a provision being recognised for a newly onerous lease, along with legal settlements being made for $3.5 million.

Revenues from other sources increased by $0.3 million in 2013−14.

Expenditure on ACCC activities increased by $5.98 million in 2013−14 and was primarily related to the recognition of a provision for an onerous lease of $3.3 million and legal settlements of $3.5 million. A comparison of revenue and expenditure trends over the last four years is illustrated in figure 1.1.

Figure 1.1: ACCC revenue and expenditure

Figure 1.1 ACCC revenue and expenditure

Key financial results for ACCC for the financial years 2011−12, 2012−13 and 2013−14 are shown in table 1.1.

Table 1.1: ACCC comparative financial results, 2011–12, 2012−13 and 2013−14

 

2013−14 $’000

2012−13 $’000

2011−12 $’000

Revenue from Government—appropriation receipts 179 517 150 228 151 275
Other revenues 1 161 852 1 549
Changes in asset revaluation surplus (14) 53 142
Total income 180 664 151 133 152 966
Operating expenses 183 102 177 117 179 063
Comprising expense major categories:      
Employee costs 107 091 101 478 100 607
Legal fees 23 366 25 111 26 277
Other expenses 52 645 50 528 52 206
Net cost of services (expenses less revenues) 181 941 176 265 177 514
Net operating surplus (loss) (2 438) (25 984) (26 097)
Operating cash balance 1 941 592 1 792
Receivables 26 662 11 033 32 626
Total assets 53 585 37 101 60 619
Total liabilities 49 089 46 502 46 114
Total equity 4 496 (9 401) 14 505
Revenues raised on behalf of the Commonwealth (administered fees and fines) 30 050 57 067 28 315

Expenditure

The ACCC is a knowledge-based organisation and as such spends approximately 58 per cent of total expenditure on employee costs, as compared to 57 per cent in 2012−13. Legal expenditure is subject to volatility depending on the timing and outcome of litigation proceedings. Legal expenditure decreased by $1.7 million or 6.9 per cent in 2013−14, compared to 2012−13. Other expenses (excluding depreciation) increased by $1.4 million or 3.2 per cent in 2013−14 (due to an increase in onerous lease provision expense offset by decreases in consulting and contracting services and travel). There has been a slight increase in depreciation and amortisation expenditure over the same period.

Figure 1.2: ACCC expenditure, 2013−14

Figure 1.2 ACCC expenditure, 2013-14

Operating statement

The ACCC recorded an operating loss for 2013−14 of $2.438 million, as compared to an operating loss of $25.984 million in 2012−13.

Balance sheet

The ACCC’s net assets as at 30 June 2014 totalled $4.5 million as compared to ($9.4) million in 2012−13.

Assets

Total assets as at 30 June 2014 were valued at $53.6 million compared to $37.1 million in 2012−13, representing a 44.5 per cent increase. This increase in assets primarily relates to an increase in the Appropriations receivable from additional funding provided to the Commission in the 2013−14 Financial Year.

All assets have been managed in accordance with Commonwealth policies and reported following the relevant accounting standards.

Liabilities

Total liabilities increased from $46.5 million in 2012−13 to $49.1 million in 2013−14. The increase was largely due to the provision for an onerous lease, along with accrued wages due at the end of the financial year (as a result of the timing of the first pay day in July 2014).

Administered revenue

Revenues administered on behalf of the government during 2013−14 amounted to $30.1 million, a decrease of $27 million from last year (2012−13: $57.1 million). This amount includes court-imposed fines and costs.

Staffing summary

Table 1.2: Average staffing level

 

Budgeted

Actual

2010–11 778 790
2011–12 813 807
2012–13 745 798
2013–14 802 788

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