FINANCIAL RESULT

FWBC recorded an operating surplus of $40.519 million for 2011-12. The unusually large operating surplus is a result of s.32 Financial Management and Accountability Act 1997 (FMA Act) transfers of all remaining departmental appropriation from the Office of the Australian Building and Construction Commissioner (ABCC) to FWBC following the cessation of the ABCC on 31 May 2012 and the commencement of FWBC on 1 June 2012.

Under Australian Accounting Standards and the Finance Minister’s Orders (FMO’s), s.32 FMA Act transfers of departmental appropriation are required to be treated as revenue in the financial statements of the gaining agency (FWBC).

Therefore, this is an absurd result which does not reflect the true position of the entity after one month of operation. All ABCC appropriation was transferred to FWBC rather than a logical appointment of 11/12ths to 30 June 2012.

Refer to part 4 of this report for the FWBC financial statements.

Table 3.4 summarises the total resources in comparison to the total payments made during the year.

TABLE 3.4 FWBC RESOURCE STATEMENT 2011-12

 

Actual available
appropriation for
2011-12
$‘000
(a)

Payments
made
2011-12
$‘000
(b)

Balance remaining
$‘000
(a) – (b)

Ordinary annual services

 

 

 

Prior year departmental appropriation

46,198

3,883

42,315

Departmental appropriation1

s.31 FMA Act
Relevant Agency Receipts

Total ordinary annual services

46,198

3,883

42,315

Total net resourcing for
Fair Work Building & Construction

46,198

3,883

42,315

NOTE 1. APPROPRIATION BILL (NO. 1) 2011-12

TABLE 3.5 FWBC EXPENSES AND RESOURCES FOR OUTCOME

Outcome 1
Enforce workplace relations laws
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*
2011-12
$–000
(a)

Actual
expenses
2011-12
$–000
(b)

Variation
$–000
(a) – (b)

Program 1.1: Education, advice
and compliance functions

 

 

 

Departmental expenses:

 

 

 

Ordinary annual services
(Appropriation Bill No. 1)

43,642

3,151

40,491

s.31 FMA Act
Relevant Agency Receipts

28

28

Expenses not requiring
appropriation in the Budget year

174

174

Total for Program 1.1

43,844

3,325

40,519

Outcome 1 Totals by Appropriation Type

 

 

 

Departmental expenses:

 

 

 

Ordinary annual services
(Appropriation Bill No. 1)

43,642

3,151

40,491

s.31 FMA Act
Relevant Agency Receipts

28

28

Expenses not requiring
appropriation in the Budget year

174

174

Total expenses for Outcome 1

43,844

3,325

40,519

* FULL YEAR BUDGET, INCLUDING ANY SUBSEQUENT ADJUSTMENT MADE TO THE 2011-12 BUDGET.

TABLE 3.6 FWBC STAFFING LEVELS

 

2011-12
(Actual)

2012-13
(Budget)

Average Staffing Level (number)

148.000

155.00

Table 3.5 summarises expenses and resources required for FWBC to achieve its outcome.