Financial Result

FWBC had total income of $34.175 million for 2015–16 which included appropriation funding of $33.559 million and incurred total expenses of $34.228 million. As result FWBC recorded an operating loss of $0.053 million in 2015–16.

Refer to Part 5 of this report for the FWBC financial statements.

Table 24 summarises the total resources in comparison to the total payments made during the year.

Table 25 summarises expenses and resources required for FWBC to achieve its outcome.

#Table 24: FWBC Resource Statement 2015–16
 

Actual Available Appropriations for 2015–16
$'000
(a)

Payments Made 2015–16
$'000
(b)

Balance Remaining 2015–16
$'000
(a-b)

Ordinary annual services1
Departmental appropriation2

104,179

39,248

64,931

Total Ordinary Annual Services

104,179

39,248

64,931

Total Available Annual Appropriations

104,179

39,248

64,931

Total Net Resourcing for the Office of the Fair Work Building Industry Inpectorate

104,179

39,248

64,931

1. Appropriation Act (No. 1) 2015–16. This may also include prior-year departmental appropriation and section 74 retained revenue receipts.

2. Includes an amount of $1.601 m in 2015–16 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners'.

#Table 25: Expenses and Resources for Outcome 1

Outcome 1: Enforce workplace relations law in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Budget
2015–16
$'000
(a)

Actual Expenses
2015–16
$'000
(b)

Variation
2015–16
$'000
(a-b)

Programme 1.1: Education Services and Compliance Activities

Departmental Expenses

     

Ordinary Annual Services (Appropriation Act No.1)

33,905

33,612

293

Revenue from independent sources (Section 74 of PGPA Act)

103

616

(513)

Total for Program 1

34,008

34,228

(220)

Total Expenses for Outcome 1

34,008

34,228

(220)

       
   

2015–16

 

Average staffing level (number)

 

132

 

Note: Budget information reflects budgets as set out in the Portfolio Budget Statements 2015–16 (Table 3.2.1).

Financial management

Financial services are provided to the FWBC on an outsourced arrangement by the Fair Work Ombudsman (FWO) under the Payroll and Finance Services memorandum of understanding between FWBC and FWO.

Assets management

FWBC's main asset types are leasehold improvements/fit-outs, computer equipment, internally developed software, and office furniture and equipment. Assets management is given regular and appropriate attention.

Procurement

FWBC's procurement policies reflect the principles of the Commonwealth Procurement Rules 2014 (CPRs).

FWBC applies the following criteria to all procurement activities:

  • represents value for money;
  • encourages competition;
  • makes efficient, effective, and ethical use of resources; and
  • is accountable and transparent.

FWBC's primary strategy for obtaining value for money is to access existing Australian Government panels or coordinated contract arrangements when procuring goods and services.

All open approaches to the market are advertised on the AusTender website. All purchases greater than $10,000 (including GST) are reported in AusTender.

FWBC supports small business participation in the Australian Government procurement market. Small and Medium Enterprise and Small Enterprise participation statistics are available on the Department of Finance's website. FWBC's procurement and tender practices allow small and medium sized businesses to compete fairly for FWBC procurement requirements. FWBC's approach to market and tender requirements are such that small and medium businesses are not unduly burdened with costs in any submission to FWBC. FWBC procures from a broad range of small, medium and large businesses.

FWBC has an annual procurement plan outlining expected major procurement activity. This is published on the Austender website.

All FWBC procurements with an estimated value greater than $80,000 (including GST) are subject to an open approach to the market (in line with CPR mandatory requirements) unless these procurements meet CPR conditions for direct sourcing.

FWBC also lists contracts valued at $100,000 or more that have not been fully performed or that had been entered into during the previous 12 months on FWBC's website, in accordance with the Senate Order of 20 June 2001.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website, www.tenders.gov.au.

Consulting services

During 2015–16, 12 new consultancy contracts were entered into involving total actual expenditure of $344,121 (including GST). No ongoing consultancy contracts carried over from 2014–15.

FWBC engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to:

  • investigate or diagnose a defined issue or problem;
  • carry out defined reviews or evaluations; and
  • provide independent advice, information or creative solutions to assist FWBC's decision-making.

Prior to engaging consultants, FWBC takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the Public Governance and Accountability Act 2013 and related regulations, including the CPRs and relevant internal policies.

Contracts

Contracts greater than $100,000

No contract of $100,000 or more (including GST) was let during the reporting year by FWBC that did not provide for the Auditor-General to have access to FWBC's premises.

Exempt contracts

There was no contract in excess of $10,000 (including GST) or standing offer during 2015–16 that was exempt from being published in AusTender on the basis that it would disclose exempt matters under the Freedom of Information Act 1982.

Grant programs

FWBC does not administer any grant programs and no grants were made during 2015–16.

Advertising and research

No advertising or promotional campaigns were undertaken by FWBC during 2015–16.

No suppliers provided advertising and market research services during 2015–16.