This section provides an overview of the ARC’s financial performance during 2015–16 for both departmental and administered activities. It should be read in conjunction with the information on financial performance provided in Part 4 which includes:
- the ARC’s financial statements (including a statement from the Chief Executive Officer and Chief Financial Officer that the statements comply with the Public Governance, Performance and Accountability Act 2013 and that the ARC is a going concern)
- the Australian National Audit Committee unqualified audit opinion for these statements.
The entity resource statement is presented in Appendix 5: Table A5.1 followed by the Expense by Outcome table, Table A5.2.
The ARC’s total appropriated resources for 2015–16 were $846.1 million. This comprised:
- $821.2 million for the administered appropriation ($815.5 million special appropriation for the National Competitive Grants Programme and $5.7 million for the annual administered appropriation)
- $24.8 million for the departmental appropriation ($21.0 million for operating expenses, $1.3 million for the Departmental Capital Budget and $2.6 million for an equity injection).
Departmental activities include assets, liabilities, revenues and expenses that the ARC controls directly and uses to produce outcomes on behalf of the government.
Figure 2.11 outlines the ARC’s departmental financial performance over the past five years and the current budget for 2016–17. Expenditure and Government revenue has been consistent over the 2011–12 to 2014–15 financial years. The increase in 2015–16 expenditure and 2016–17 budget mainly reflects the 2015–16 Mid-year Economic and Fiscal Outlook measures relating to the National Innovation and Science Agenda.
For 2015–16, the ARC recorded an operating deficit of $5.1 million. If the depreciation and amortisation expenditure is excluded to account for the net cash arrangements this results in a $2.3 million surplus.
As indicated in Figure 2.11 depreciation and amortisation costs for 2015–16 were greater than in previous years. This is mainly attributable to the completion of the Research Management System intangible asset in 2015–16. With the completion of RMS the aged and non-compatible components of the previous RMS were assessed as no longer having a useful life.
Figure 2.11: Departmental financial performance, 2011–12 to 2016-17
Administered activities includes assets, liabilities, revenues and expenses that are managed by the ARC on behalf of the Government which includes grants and supplier costs.
Figure 2.12 outlines the ARCs administered financial expenditure over the past five years and the budget for 2016–17. The expenditure fluctuates from year to year and reflects the Government’s priorities and also the timing of when expenditure has been recognised.