The following tables provide a comparision of the original budget as presented in the 2014-15 Protfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the Agency. The Budget is not audited.

Note 25A: Departmental Budgetary Reports

Statement of comprehensive income for the period ended 30 June 2015
  Actual Budget estimate
Original(footnote1) Variance(footnote2)
2015
$’000
2015
$’000
2015
$’000
Net Cost of Services
Expenses
Employee benefits 15,971 22,569 (6,598)
Suppliers 16,470 11,399 5,071
Depreciation and amortisation 805 729 76
Total expenses 33,246 34,697 (1,451)
Less:
Own-source Income
Own-source revenue
other revenue 887 46 841
Total Own-source revenue 887 46 841
Gains
Other gains 46 56 (10)
Total gains 46 56 (10)
Total Own-source income 933 102 831
Net cost of services (32,313) (34,595) 2,282
Revenue from Government 33,859 33,866 (7)
Deficit 1,546 (729) 2,275
Other comprehensive income
Total other comprehensive income
Total comprehensive loss attributable to the Australian Government 1,546 (729) 2,275

Notes:

Footnote1 The Agency’s original budgeted financial statement that was first presented to parliament in respect of the reporting period (ie. From the Agency’s 2014 to 15 Portfolio Budget Statements (PBS)).

Footnote2 Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Statement of financial position as at 30 June 2015
  Actual Budget estimate
Original(footnote1) Variance(footnote2)
2015
$’000
2015
$’000
2015
$’000
Assets
Financial Assets
Cash and cash equivalents 202 568 (366)
Trade and other receivables 48,617 44,230 4,387
Total financial Assets 48,819 44,798 4,021
Non-financial Assets
Land and buildings (leasehold improvements) 365 445 (80)
Property, plant and equipment 518 292 226
Intangibles 85 (85)
Other non-financial Assets 506 621 (115)
Total non-financial Assets 1,389 1,443 (54)
Total Assets 50,208 46,241 3,967
Liabilities
Payables
Suppliers 1,457 1,803 (346)
Other payables 1,340 2,048 (708)
Total payables 2,797 3,851 (1,054)
Provisions
Employee provisions 3,639 3,004 635
Total provisions 3,639 3,004 635
Total Liabilities 6,436 6,855 (419)
Net Assets 43,772 39,386 4,386
Equity
Contributed equity 2,883 5,178 (2,295)
Retained earnings (Accumulated deficit) 40,889 34,208 6,681
Total Equity 43,772 39,386 4,386

Notes:

Footnote1 The Agency’s original budgeted financial statement that was first presented to parliament in respect of the reporting period (ie. From the Agency’s 2014 to 15 Portfolio Budget Statements (PBS)).

Footnote2 Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Statement of changes in equity as at 30 June 2015
  Contributed equity Retained Earnings Total equity
Actual Budget estimate Actual Budget estimate Actual Budget estimate
Original (footnote1) Variance (footnote2) Original (footnote1) Variance (footnote2) Original (footnote1) Variance (footnote2)
2015
$’000
2015
$’000
2015
$’000
2015
$’000
2015
$’000
2015
$’000
2015
$’000
2015
$’000
2015
$’000
Opening balance
Balance carried forward from previous period 4,736 4,736 39,343 34,937 4,406 44,079 39,673 4,406
Opening balance 4,736 4,736 39,343 34,937 4,406 44,079 39,673 4,406
Comprehensive Income
Surplus (deficit) for the period 1,546 (720) 2,275 1,546 (729) 2,275
Total comprehensive loss attributable to the Australian Government 1,546 (720) 2,275 1,546 (729) 2,275
Transactions With Owners
Repeal of capital appropriation (2,295) (2,295) (2,295) (2,295)
Departmental capital budget 442 442 442 442
Total transactions with owners (1,853) 442 (2,295) (1,853) 442 (2,295)
Closing Balance Attributable to the Australian Government 2,883 5,178 (2,295) 40,889 34,208 6,681 43,772 39,386 4,386

Notes:

Footnote1 The Agency’s original budgeted financial statement that was first presented to parliament in respect of the reporting period (ie. From the Agency’s 2014 to 15 Portfolio Budget Statements (PBS)).

Footnote2 Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Cash flow statement for the period ended 30 June 2015
  Actual Budget estimate
Original(footnote1) Variance(footnote2)
2015
$’000
2015
$’000
2015
$’000
Operating Activities
Cash received
Sales of good and rendering services 1,014 1,104
Appropriations 31,361 33,954 (2,593)
Net GST received 1,290 1,290
Total cash received 33,665 33,954 (289)
Cash used
Employees 15,729 21,702 (5,973)
Suppliers 16,538 10,761 5,777
Section 74 receipts transferred to OPA 1,467 1,400 67
Total cash used 33,734 33,863 (129)
Net cash from (used by) operating activities (69) 91 (160)
Investing Activities
Cash received
Proceeds from sales of property, plant and equipment 14 14
Total cash received 14 14
Cash used
Purchase of non-financial assets 707 552 155
Total cash used 707 552 155
Net cash used by investing activities (693) (552) (141)
Financing Activities
Cash received
Contributed equity 707 463 244
Proceeds from sale of assets
Total cash received 707 463 244
Net cash from financing activities 707 463 244
Net increase in cash held (55) 2 (57)
Cash and cash equivalents at the beginning of the reporting period 257 566 (309)
Cash and cash equivalents at the end of the reporting period 202 568 (366)

Notes:

Footnote1 The Agency’s original budgeted financial statement that was first presented to parliament in respect of the reporting period (ie. From the Agency’s 2014 to 15 Portfolio Budget Statements (PBS)).

Footnote2 Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Note 25B: Departmental Major Budget Variances for 2015

Note 25B: Departmental Major Budget Variances for 2015
Explanations of major variances Affected line items (and statement)
Employee Benefits

The staffing level reached 132 full time equivalent employees (FTE) compared with a budgeted level of 155 FTE. The FWBII received additional ongoing funding in 2013-14 and commenced a recruitment program during the year which has seen the staffing increase from 2013-14 (114 FTE) and is expected to reach the planned levels during 2015-16

Employee benefits expense (Statement of Comprehensive Income), trade and other receivables (Statement of Financial Position), cash used on employees (Cash Flow Statement)
Suppliers

FWBII had an agency-wide focus on enhanced compliance and litigation activities. These reflected the significant increase in legal expenses as litigation in the Federal Court and Fair Work Commission has increased markedly. Proceedings commenced increased from 22 in 2013-14 to 42 in 2014-15 and the budget was based on 2013-14 levels. The increase in investigation activity has also led to increased travel by staff.

Suppliers expense (Statement of Comprehensive Income), cash used on suppliers (Cash Flow Statement)
Other Revenue

The FWBII received additional revenue from sub-leasing excess office space and costs awarded to the FWBII from court actions

Own source revenue (Statement of Comprehensive Income), cash received from sales of goods and rendering of services (Cash Flow Statement)
Non Financial Assets

The timing of items in the capital plan changed. Budget for leasehold improvements and intangibles included work in progress costs to be completed and planned in 2014-15, however, this will now be undertaken in 2015-16.

Non financial assets (Statement of Financial Position), cash used for investing activities (Cash Flow Statement)
Other Payables

Payments of appropriation made by the Department of Employment to FWBII prior to FWBII being listed as an entity under the Public Governance and Accountability Act 2013 were in excess of the amount transferred to them by the Department of Finance. FWBII has a payable at 30 June 2015 of $360,000 being a repayment of the overpayment.

Other payables
(Statement of Financial Position)
Employee Provisions

While the staff numbers for FWBII did not reach the budgeted levels, many of the new staff transferred from other Commonwealth agencies and brought leave liability with them. In addition, the lower discount rate used in the calculation of long service leave liability resulted in a higher than budgeted provision.

Employee provisions
(Statement of Financial Position)

Note 25C: Administered Budgetary Reports

Administered activities relate to court awarded activities and due to their nature are not budgeted.